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TOP STORY
POLL: EU ETS emissions seen down a record 14% in 2023
Verified emissions covered under the EU ETS likely fell by a record 14% year-over-year in 2023, according to a poll of 13 analysts.
EMEA
Compliance with UN climate goal is “essential feature” of EU carbon removals law, experts say
Two prominent climate policy experts have taken issue with criticisms that the EU’s Carbon Removal Certification Framework risks leading to double counting towards UN climate targets, saying this is “an essential feature rather than a bug”.
EU ministers agree to fewer agri rules with looser climate requirements
EU ministers welcomed potential new rules for the agriculture sector on Tuesday despite weak requirements for climate action, as farmers rioted outside in the streets of Brussels.
Majority of sustainability experts believe elections will weaken European Green Deal -survey
More than half of sustainability experts polled by a green think tank believe the Green Deal agenda might be weakened after the 2024 European Parliament elections, preliminary results showed.
Just transition takes centre stage as EU countries debate 2040 climate goal
Concerns about social acceptance, industrial policy, and finance came to the fore on Monday as the EU’s 27 environment ministers debated the bloc’s 2040 climate target.
Euro Markets: EUAs drop back after two-month high on profit-taking, renewed short selling as gas falls
EU carbon prices ended Tuesday some 4.2% lower after an early increase to a new two-month high was followed by profit-taking and renewed short selling, while energy prices fell back after the previous session’s sharp gains which one analyst called “exaggerated”.
AMERICAS
Utah’s largest coal plant to be compelled to continue operations amid weaning demand
Governor Spencer Cox (R) last week signed legislation that would allow Utah to purchase the state’s largest coal-fired power plant, originally scheduled for retirement in 2025, amid backlash from the operator citing a drop in electricity demand.
California again achieves record-low emissions in February, as natural gas sees its role recede
California electricity sector emissions continued to fall to record lows in February, as natural gas retreated from its historically high share of the state’s energy supply it has held in recent months, data published Friday showed.
BC utility cannot provide 100% renewable gas to all new homes, faces separate greenwashing lawsuit
A British Columbia regulator rejected a provincial utility’s proposal to provide 100% renewable natural gas (RNG) to all new homes at subsidised rates, while an environmental non-profit took the company to court on Tuesday for alleged greenwashing.
Canada-based offset developer hires European carbon market expert to head trading desk
A Canada-based offset project developer has hired a European carbon market expert to lead its trading desk.
Cemex says emissions cuts allowing it to stretch surplus carbon allowance inventories beyond 2026
Cemex continues to cut its Scope 1 and 2 emissions, allowing it to stretch the length of time it can rely on its surplus of European carbon allowances, the cement-maker said on Tuesday.
ASIA PACIFIC
Oil and gas majors partner to produce SAF at Chinese refinery
China’s second-largest oil and gas company and French oiler TotalEnergies plan to develop sustainable aviation fuel (SAF) at an existing Chinese oil refinery.
Pertamina to push Indonesia’s OJK to allow more project types on national carbon exchange
Indonesia’s state-owned energy company Pertamina will lobby the country’s Financial Services Authority (OJK) to allow more energy efficiency projects on the country’s national carbon exchange, a representative told local media.
Novel New Zealand concrete decarbonising start-up raises $4 mln in oversubscribed seed funding round
A New Zealand start-up focussing on decarbonising concrete has secured NZ$6.5 million ($4mln) in seed funding that will go towards scaling up its business, it announced.
Continued capacity expansion hampers China’s shift to greener steel -report
Continued aggressive spending on new production capacity, alongside plummeting profitability, has made China’s steel sector financially vulnerable and hampered the industry-wise shift to greener furnaces, a report has found.
INTERNATIONAL
Japanese, US giants look to clean fuel agreement
Japan’s Jera plans to buy into a giant US hydrogen project that would supply it with 500,000 tonnes of green ammonia per year, it said Tuesday.
VOLUNTARY
Gold Standard “regrets” lack of dialogue with voluntary crediting programmes after CORSIA decision
Gold Standard has expressed disappointment with a UN decision to keep its voluntary carbon credits still pending approval for the current phase of CORSIA, and regrets that the assessment process did not allow for more open communication with other applying programmes.
SBTi has no plans to validate voluntary carbon credit use towards corporate emissions targets
The Science Based Targets initiative (SBTi) will not bow to pressure and validate the use of voluntary carbon credits to help a company achieve its emission targets, the body confirmed to Carbon Pulse Tuesday.
INTERVIEW: Voluntary carbon credits to play role in achieving net zero buildings, but better definition needed
The building industry would benefit from a clearer definition of net zero and regulation requiring it to measure and track the whole-life carbon emissions of building projects, according to an industry consultant, who also acknowledged that the sector will need voluntary carbon credits to offset its residual emissions.
LEGO signs up for long-term carbon removals
LEGO Group has signed a nine-year deal with a direct air capture technology developer to permanently remove CO2, the companies announced on Tuesday.
Treat voluntary carbon credits as intangible property and watch the market grow, report says
Treating voluntary carbon credits as intangible property rather than a commodity can provide the clear commercial basis participants need to confidently make transactions and manage risk in the market, according to a legal paper released Tuesday by a Singaporean investment platform.
UK-registered carbon insurer unveils enhanced rock weathering product
A London-headquartered carbon insurance company has unveiled the expansion of its offering to covered voluntary enhanced rock weathering (ERW) projects.
New biochar carbon token launched with a promise to thwart greenwashing
A carbon-negative investment platform is issuing a biochar carbon token that “cannot be corrupted by greenwashing”, using blockchain-based trading technology, it announced on Tuesday.
Georgia-based direct air capture company launches, looks to scale tech
An Atlanta-based direct air capture (DAC) company announced its official launch Tuesday, aiming to provide an economically advantageous way to remove CO2 at large scale.
BIODIVERSITY (FREE TO READ)
UK Labour party wants to “simplify” Environmental Land Management scheme
The Labour party in the UK wants to make the Environmental Land Management (ELM) scheme easier to manage for land owners while better understanding its impacts, according to a minister.
EU empty-handed at COP16 without nature law -Environment Commissioner
A last-minute failure to green-light the so-called Nature Restoration Law will leave the European Union “empty-handed” at the upcoming UN summit on biodiversity, EU commissioner for Environment Virginijus Sinkevicius said during a bitter speech on Monday.
Japanese IT company launches marine data acquisition technology, supports blue carbon and biodiversity
A Japanese information services provider has launched an AI-powered solution for data acquisition, which can quantify and simulate changes in the marine environment to support blue carbon and biodiversity initiatives.
German network releases guidelines to enhance biodiversity conservation policies
A German-based research network has released a set of recommendations to enhance conservation efforts, ranging from transforming food systems to improving monitoring, in an attempt to better inform nature policies at a national and European level.
Two-thirds of countries failing to include sustainability in consumer protection laws, UNCTAD suggests
Many countries are not including sustainability in consumer protection laws, an action regarded as a critical way of hastening the implementation of the GBF, a UN Conference on Trade and Development (UNCTAD) officer said Tuesday.
Biodiversity Pulse: Tuesday March 26, 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
Fossil fuel subsidies fight – The US and EU are at odds over the extent to which the OECD should impose a ban on subsidies for oil and gas developments, the FT reported. OECD countries have held a second round of closed door talks in Paris to debate proposals by the EU and UK to end most export credit agency loans and guarantees for oil, gas, and coal mining projects, building on a 2021 agreement to stop subsidising coal-fired power. A person familiar with the talks told the FT that the US is still assessing the EU proposal and that discussions are scheduled to continue in June and November. The EU proposal would only allow export credit agencies to support a fossil fuel project if the country determines that it is in line with a 1.5C limit. This would open the US agency, Exim, up to political scrutiny from Republicans when it needs to secure fresh funding in 2026.
People back methane cuts – Around 82% of people surveyed in 17 countries across six continents said they support actions to reduce methane emissions, including 39% who showed strong support, according to a poll commissioned by the Global Methane Hub. The online survey questioned 12,976 people in countries including the UK, the US, Australia, Brazil, Canada, China, Germany, India, Italy, Nigeria, Norway, and South Korea.
EMEA
Floating falters – Energy executives are warning that the offshore wind industry in the UK could falter due to a lack of government investment, with the latest round of funding allocations for wind farms meaning that just one of three viable floating offshore projects will be realised. The warning follows Prime Minister Rishi Sunak’s recent retreat from the net zero agenda. Industry stakeholders believe that floating offshore wind will be a key part of the UK’s renewable energy mix if it is to decarbonise the energy grid by 2035, or 2030 under a future Labour government. (inews.com)
Still in sight – The UK can still meet its 2030 target for 50 GW of offshore wind capacity, up from around 15 GW today, even after an auction last year failed to secure any new capacity, said Graham Stuart, Britain’s minister for Energy Security and Net Zero, speaking to Reuters. The UK intends for its next auction to spur renewable power projects to be worth over £1 bln, it said last month. The budget is four times higher than the previous one and can also be increased, Stuart said. The government has not yet specified the amount of capacity it wants to secure in the next auction.
Questioning the claims – Campaigners and MPs in the UK are questioning the longstanding government claim that the North Sea oil and gas industry supports some 200,000 jobs, reports the Guardian. The campaigners point out that the most recent Office for National Statistics data suggests that just 27,600 people are directly employed, far less than the 200,000 figure often used as justification for pushing ahead with fossil fuel development. Green MP Caroline Lucas has submitted three parliamentary questions asking for clarity on how the 200,000 figure was reached. In response, energy minister Graham Stuart said the figure came from industry body Offshore Energies UK and refers to direct, indirect and induced jobs supported by the sector, but failed to describe how the figure was calculated. Opposition to the government’s decision to green light new North Sea developments has been widespread, from hundreds of climate scientists and academics, with the Rosebank oilfield particularly controversial.
Power-hungry AI – Electricity demand from UK data centers will rise sixfold over the next decade as a boom in AI calls for increased computing power, according to the head of National Grid, Bloomberg reports. The demand spike will ramp up pressure on the country’s electricity network, which is already under strain from the accelerating electrification of home heating, transport, and industries. The outlook is similar elsewhere, as countries grapple with how to fund the huge spending needed to expand capacity. Global electricity demand from data centers, AI, and cryptocurrencies may more than double over the next three years, according to the IEA.
Czech out – Czech-utility CEZ said it has officially kicked off a divestment process of several companies in Poland as part of its decarbonisation strategy. It will also strengthen its portfolio of energy service companies under its ESCO unit, the company said. Coal-fired plants CEZ Skawina and Cez Chorzow, that produced in total 1,390 GWh of electricity and 5,649 TJ of heat in 2023 will be divested, along with CEZ Produkty Energetyczne Polska and CEZ Polska. (Reuters)
Mass consensus – More than half of European voters consider climate action to be a priority, while less than a third think the EU has had a positive impact on environmental protection, according to a Euronews-Ipsos poll. Meanwhile, a further 32% said climate action was important but not a priority and 16% view the fight against climate change as a secondary issue. Some 25,916 people across 18 countries took part in the survey, ahead of the European elections in June, where they were interviewed on a range of issues. Denmark (69%), Portugal (67%) and Sweden (62%) were the countries where the highest percentage of people saw climate change as a priority, while Poland, Czech Republic, and Finland had the lowest percentage of respondents who believed climate change was a priority for the bloc. Women were slightly more likely to say the fight against climate change was a priority at 55%, compared to 49% of men.
ASIA PACIFIC
Work begins – The New Zealand government has begin work with the Centre for Sustainable Finance (CSF) and Climate Bonds Initiative on a green taxonomy for the country, Good Returns reports. The CSF has convened an independent technical advisory group to prepare non-binding advice on the design of the taxonomy rulebook for New Zealand’s Minister for Climate Change, Simon Watts. The group’s recommendations will be delivered to the government in June. It has also partnered with the Climate Bonds Initiative to mobilise global capital for climate action. CSF is also working with the Australian Sustainable Finance Institute, which is advising the Australian government on its own green taxonomy.
Softened – Australia has announced a significant softening of its proposed new vehicle emissions standards for pick-up trucks and some popular four-wheel-drives, but is still being hailed as a win to slash transport emissions, the Driven reports. The popular four-wheel-drives will be re-categorised as light commercial vehicle, which has a softer trajectory to its emissions goals. The crediting scheme announced by the government has also been delayed to July 1, next year, rather than Jan. 1. The softening stance was expected after significant push back from the country’s main car lobby and Japanese automakers. However, the move is still being hailed as a victory, given that it will now mean Australia will have vehicle emissions efficiency standards.
New man in top spot – Singapore has appointed Ravi Menon as its first ambassador for climate action in order to “rive public-private partnerships with local stakeholders, in particular the business community, to help them contribute to global discourse on how to help address climate challenges,” according to the Straits Times. Menon was the managing director of the Monetary Authority of Singapore. He will help to build a green finance ecosystem, the paper said.
Funds secured – South Korea has agreed to grant $13.5 mln as core contributions to the Global Green Growth Institute (GGGI) this year, an increase from $12 mln in 2023 and $10 mln in 2022, to promote sustainable development of developing and emerging countries, they announced this week. South Korea is the host country of GGGI, and its government has been a strong supporter of the institute since its inception as an intergovernmental organisation in 2012.
Climate target – Busan, South Korea’s second-largest city, has pledged to reduce GHG emissions by 45% by 2030 compared to 2018 levels, according to Seoul Economic Daily. In order to reach the target, the city plans to expand the supply of renewable energy, supply eco-friendly vehicles such as electric and hydrogen cars, build hydrogen clusters, as well as explore blue carbon and carbon capture.
AMERICAS
QC cap-and-trade – Quebec’s environment ministry (MELCCFP) provided a timeline for changes to its cap-and-trade programme, noting the publication of a proposed regulation or other legislative instrument to arrive in Sep. 2024, and enactment of a regulation or other legislative instrument to take place Dec. 2024, according to the ministry’s site, updated Tuesday. MELCCFP last held a joint webinar with California regulator ARB in Nov. 2023 to discuss independent modelling efforts for allowance prices in its linked WCI market under different allowance budget scenarios.
Bye bye, ban – Berkeley, California has agreed to repeal the country’s first-ever ban on natural gas piping in new buildings that was introduced in 2019, E&E News reported Tuesday. The city will no longer enforce the policy as it moves through the legal process of repealing the restriction. The decision comes in light of a lawsuit brought by the California Restaurant Association (CRA), which said the regulation was passed without regard for existing cooking technologies and ultimately posed challenges to small businesses and communities that rely on gas-burning equipment. Several other California cities, including Los Angeles, San Francisco, and Sacramento, have adopted similar bans modelled after Berkeley’s policy, which CRA should follow Berkeley in rescinding their restrictions.
Liar liar, planet on fire – Bucks County in Pennsylvania is suing oil producers, including BP, Shell, Exxon, Chevron, and Phillips 66, and lobby group American Petroleum Institute for deceiving the public regarding the industry’s role in exacerbating climate change, the Associated Press reported Tuesday. The county estimates that it will spend $955 mln through 2040 to address climate change impacts, and is seeking financial compensation from the producers to mitigate damages. The move follows similar legal challenges introduced by other municipal governments – including those in California, Colorado, Hawaii, Illinois, Maryland, New Jersey, New York, Oregon, South Carolina, and Puerto Rico as well as eight states and Washington, DC – against oil and gas companies over their role in climate change, according to the Center for Climate Integrity.
Pipe it up – Canada’s oil sands group Pathways Alliance last week said it would soon request approval for its C$16.5 bln ($12.2 bln) carbon capture project that involves building a CO2 pipeline in northern Alberta that stretches 400 km, Carbon Herald reported Friday. Members of the group, which includes Suncor Energy, Canadian Natural Resources, Cenovus Energy, Imperial Oil, MEG Energy, and ConocoPhillips Canada, have set a target to reduce their GHG emissions by 32% relative to 2019 levels by 2030. The proposed pipeline would slash CO2 emissions directly from oil sands facilities in northern Alberta and store them underground. However, the alliance previously informed that it cannot make a final investment decision without regulatory approval. The alliance anticipates regulatory processes to span a year.
Chilean committee – A 19-person committee of experts from academia, the private sector, and civil society has been convened by the Chilen Ministries of Environment, Economy, Energy, and Science to accelerate carbon neutrality and climate resilience in the country, reported Canal Sur Patagonia. Actions proposed by the committee should have a significant impact on the themes of carbon neutrality and resilience and be feasible in the short term, driven by the private sector, and address issues not currently being addressed. The committee’s first meeting was held Monday, and it is expected its final report will provide around 15 detailed recommendations to the Chilean president, Gabriel Boric.
VOLUNTARY
Mangrove momentum – Climate Impact Partners has joined up with WeForest to launch a high-impact mangrove reforestation project in Senegal, in partnership with local NGO Oceanium. The project to restore nearly 5,000 ha of the Casamance Delta ecosystem in Senegal is expected to deliver 1 mln tonnes of carbon removal over the next 30 years, while restoring habitat for mammals and hundreds of migratory birds, the partnership announced today. The first credit issuance is expected in 2026 and the project will be among the first to issue under Verra’s latest methodology for tidal wetland restoration – accounting for sea level rises as well as accumulation of soil organic carbon.
SCIENCE & TECH
Marine CDR plant plans – California startup Ebb is planning to remove hundreds of tonnes of CO2 from the largest ocean engineering plant as soon as this year, reported IEEE Spectrum. According to plans and permit applications submitted to the town of Port Angeles in Washington, the CDR plant, codenamed project Macoma, would use seawater to remove at least 500 tonnes of CO2 from the air annually. That figure is five times the largest marine CDR experiments to date.
Plant wisely – A new study published Tuesday in peer-reviewed journal Nature Communications found that planting trees in the wrong places can lead to global warming, but also published a number of “opportunity maps” which identify the optimal places that provide climate benefits. The researchers, from academic institutions Clark University and ETH Zurich, as well as nonprofit The Nature Conservancy, were able to consider the cooling effect from trees and warming caused by albedo – the amount of solar radiation bounced back off the planet’s surface – for the first time. Tropical moist broadleaf forests, such as the Amazon, were found to be ideal locations for restoring forest cover, while the opposite was true in temperate grasslands and savannas.
AND FINALLY…
God save the pint – Scientists are helping the British brewing industry save the pint, as the hotter, drier weather in recent decades has caused the production of hops to plummet and affected the trademark bitter flavour that it provides, the BBC reports. Researchers in Kent are isolating hop genes in an effort to produce more climate change-resilient varieties and create the more intense flavours that are becoming more popular. Climate change is posing a risk to hop across Europe, according to analysis published last year by the Czech Academy of Sciences and Cambridge University. In some key hop-growing areas in Slovenia and Germany, they found a drop in output of nearly 20%.
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