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TOP STORY

FEATURE: EU governments scrambling to hire and train staff to deal with CBAM

EU governments are scrambling to hire and train staff to deal with the bloc’s Carbon Border Adjustment Mechanism (CBAM), with some — such as Germany — yet to bring on anyone new, and others — such as Slovenia and Latvia — hoping Brussels will provide more guidance, representatives from the national competent authorities have told Carbon Pulse.

VOLUNTARY

Pre-print study highlights inadequacy of forest buffer pools in voluntary carbon offset protocols

Yet another study of current carbon offset protocols published Monday shows forest buffer pools to be insufficient in insuring against risk of natural disturbances such as tropical wildfires, disease, and extreme weather, with greater significance for older forests.

Carbon developer and registry partner for orphaned well protocol

A voluntary carbon project developer has teamed up with a platform to develop an offset protocol to mitigate risks from orphaned and abandoned oil wells.

VCM Report: CORSIA voluntary carbon futures spike looks overblown

Voluntary carbon futures eligible for Phase 1 CORSIA soared past $20 on the ICE bourse last week in the wake of a UN decision to block the approval of new supply into the international aviation emissions offsetting scheme, although S&P Global kept its related spot price assessment at $11.50.

ASIA PACIFIC

NZ signals next climate, ETS policy steps in economy “action plan”

The New Zealand government has released a 36-point action plan for the country’s economy over the next quarter, which includes moves to keep the agriculture sector out of the ETS, as well as reviewing its methane science and targets.

Taiwanese trade group calls for local CBAM

One of the largest trade groups in Taiwan has urged the government to establish an emissions pricing framework for imported goods to prevent carbon leakage and sustain domestic companies’ business competitiveness amid the emergence of international carbon taxes.

Pakistan mulls taxing fossil fuels to limit demand, proposes carbon tax in upcoming federal budget

The federal government of Pakistan is considering imposing a carbon tax on fossil fuels to bring down their demand and is contemplating ways to include such a tax in its upcoming budget, officials have told a local media.

Japan aims at international impact in nature positive strategy

Japan has released a Nature Positive Economy Transition Strategy, taking aim at creating impact well outside its own borders and including the use of carbon and biodiversity credits.

South Korea should optimise carbon pricing for power sector transition -study

South Korea should take into account the factor of carbon pricing when assessing the implementation cost for a net zero electricity system, according to a recent study.

INTERNATIONAL

INTERVIEW: New global finance goal must drill down on who pays, where it goes, and how it’s tracked

The new global climate finance goal will have to drill down on details such as where the money comes from, where it is allocated, how it is monitored and verified, and, ideally, how to bolster integrity of carbon markets, according to a senior international climate finance official.

EMEA

ETS poses a “conundrum” to southern EU ports competing with North Africa, shippers council says

The European Shippers Council has hit back at an NGO’s claim that shipping companies are profiting from the ETS, countering that companies operating in southern EU countries will struggle to meet compliance obligations.

AMERICAS

Washington Clean Fuel Standard ramps up credit surplus in Q3

The Washington Clean Fuel Standard (CFS) saw its credit surplus more than double in the third quarter of 2023, as ethanol and renewable represented the largest sources of credit generation, according to recently published and updated state data.

Pennsylvania House GOP unveils energy counterproposal to Shapiro’s cap-and-trade

Republican members of the Pennsylvania House of Representatives unveiled last week a series of bills they say are intended to promote energy affordability and serve as a counterproposal to Governor Josh Shapiro’s (D) energy transition plans that include the implementation of a cap-and-trade system to replace the state’s participation in RGGI.

RGGI Market: RGAs set new records as sellers wait to secure higher profits

RGGI allowance (RGA) values reached new peaks for the third consecutive week amid market expectations of further rises until sellers lock in profits, with price stabilisation likely after the finalisation of programme changes.

Investment funds open new California cap-and-trade accounts in Q1

A range of investment funds opened accounts in California’s WCI-linked carbon market in Q1 according to state data published Friday.

Emitters and speculators widen net length in most North American carbon markets

Traders largely widened their net length across North American carbon markets, with a preference for longer dated vintages, according to data published Friday by the US Commodities Futures Trading Commission (CFTC).

BIODIVERSITY (FREE TO READ)

Latest talks fail to solve deep sea mining regulation spat

Countries failed to reach an agreement on a consolidated text on commercial deep sea mining regulations at the first part of the 29th Council of the International Seabed Authority (ISA), as metal companies are pressing to apply for permits even in the absence of a framework.

Regenerative agriculture “not a silver bullet”, researchers say

Investors need to better understand the impact of regenerative agriculture practices without expecting them to solve all their nature and climate ambitions, according to executives at a non-profit investor network.

Existing estimates of biodiversity loss can be unreliable, study finds

Ten of the most widely used datasets to measure biodiversity changes and inform conservation policies significantly underestimate the level of uncertainty, and could thus lead to unreliable estimations.

ICYM

BRIEFING: Canada set to increase federal carbon tax again, to the dismay of conservative leaders

A scheduled increase to Canada’s revenue-neutral ‘backstop’ carbon tax on fossil fuels will go ahead on Apr. 1, despite pleas to abort the rise from several conservative provincial premiers and other populist politicians.

FEATURE: First deliverables from voluntary carbon market standards’ collaboration coming in Q3, but bigger challenges lay ahead

The first deliverables from a collaboration between some of the world’s largest voluntary carbon market (VCM) standards are expected to arrive in Q3 this year, and “more complicated pieces” to come in 2025, but the alliance faces larger challenges – some existential – on the road ahead.

INTERVIEW: EU carbon prices haven’t seen bottom yet, veteran analyst warns

EU carbon prices have probably not seen their multi-year bottom yet and will likely head south again to re-test the key €50 level in the coming months, a veteran market analyst told Carbon Pulse.

AFD

Watching the watchdogs: Voluntary carbon market consortium launches oversight body to police regulators, raters

A consortium of project developers, trading firms, and other stakeholders has announced the launch of a new watchdog organisation to police efforts by regulators and rating agencies, with the aim of bringing even more integrity and transparency to the voluntary carbon market (VCM).

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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, Carbon Strategy, veritree – Vancouver, Canada

*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

Engineering climate action – Technologies on the scientific fringe such as direct air capture (DAC) and solar radiation are moving into the mainstream among scientists and investors, despite questions about their effectiveness and safety, the New York Times reports in the first of a series of articles on the risky ways humans are beginning to manipulate nature to tackle climate change. Climeworks’ DAC Mammoth plant in Iceland is set to become the biggest of its kind when it opens in a few weeks, but it will be superseded by Occidental’s Stratos plant in Texas, which will be over 10 times more powerful.

Trailblazers – Morocco and Togo submitted the Paris Agreement crediting mechanism (PACM) host party participation fulfillment form to the UNFCCC Secretariat on Thursday, becoming the world’s first countries to do so. Submitting this documentation is a prerequisite for participation in Article 6.4 of the Paris Agreement. The form must identify how participation in Article 6.4 would contribute to sustainable development, achievement of Nationally Determined Contributions (NDCs), and the long-term goals of the Paris Agreement, as well as what kinds of activities countries will approve under the PACM. Article 6 negotiations ground to a halt at Dubai’s COP28 UN climate conference in December without producing a decision text. However, several countries continue to make inroads on Article 6.2 bilateral ‘cooperative approaches’, and now the UN-mediated ‘sustainable development mechanism’ approach to carbon markets under Article 6.4.

EMEA

ExxonMobil accused of greenwashing – An investigation by openDemocracy reveals that a proposal by ExxonMobil to trap carbon dioxide at a vast oil refinery and petrochemical complex on the south coast of England and store it under the seabed of the English channel may never take off. ExxonMobil says the scheme will mean drivers can “fill up with less impact” and “make a major contribution to the UK’s move to net zero”, but the project has not received a licence or government support, and the company has not committed any of its own money to build it. (Guardian)

Biggest beneficiary – Romania will be one of the biggest beneficiaries of the Social Climate Fund, receiving €6 bln or 9.25% of the €65 bln available from the Social Climate Fund in the period 2026-32, the Romanian Energy Poverty Observatory said. The aid is intended to mitigate the potential negative effects on households from the European Union’s upcoming Emissions Trading System (ETS 2). The scheme will cover GHG emissions from heating and transport, and is scheduled to be rolled out in 2027. The funds from the Social Climate Fund are to be used for investments to support vulnerable groups, citizens with problems to pay energy or transport services. (Balkan Green Energy News)

Waste not, want not – Aker Carbon Capture has been awarded a pre-feed for Statkraft’s Heimdal waste-to-energy plant for capturing 220,000 tonnes of CO2 per year. By capturing and permanently storing these emissions, it is possible to reduce up to 25% of Trondheim municipality’s CO₂ emissions, the firm said in a press release. The pre-feed covers CO2 capture, compression, purification, liquefaction, and temporary storage at the Heimdal waste-to-energy plant. From Heimdal, the liquid CO2 will be transported by truck to an export terminal with subsequent ship transport to permanent storage.

Oh man, Oman – Oman’s Dhofar Governorate will take part in a new project called Rabt (‘Connect’) to expand the country’s electricity network and accommodate renewable energy projects in support of national net zero emissions by 2050 plans, according to local media reports on Monday. The project will shut down up to 14 diesel-powered electricity generation stations, reducing over 474,000 tonnes CO2 annually. Oman submitted its updated Nationally Determined Contribution (NDC) climate targets to the UN in November, expecting substantial emissions cuts by 2030 in pursuit of net zero. The Gulf country would halve emissions down to 7 mln tonnes CO2 annually by 2050 and leverage “breakthrough decarbonisation technologies” to counter the outstanding emissions.

ASIA PACIFIC

Our mind is set – Japanese trading house Mitsui has made a final investment decision and concluded related contracts together with its business partners for a Vietnam-based gas field development project through a wholly owned subsidiary, it said in a statement released last week. Mitsui has teamed up with several partners for the Block B Project, including state-owned Vietnam Oil and Gas Group (PVN). Production capacity is estimated to be 490 mln cubic feet per day, with production scheduled to begin by the end of 2026, according to the statement.

My bad – Recent errors spotted in the J-Credit registry system have been corrected, according to a release by Mizuho Research & Technologies, the secretariat for Japan’s national voluntary programme. Holders of J-Credits from five registered projects last month were asked to suspend trading until faulty information is corrected. Impacted projects account for only 0.02% of the units generated under the scheme, government data showed.

Gearing up – The European CBAM which is set to come into effect from 2026, is expected to hit exports in Kazakhstan, the country’s officials discussed Friday as reported by the local news agency Kazinform. The sectors largely expected to face the tax include ferrous metals and aluminium, cement, fertilizers, hydrogen, and electricity. The tax which will initially affect direct emissions will later be extended to other sectors, such as oil refining and chemicals. Kazakhstan’s ministry of trade is organising workshops to create CBAM awareness in the industries to better prepare them. According to QazTrade, the EU accounts for 39% of Kazakhstan’s exports, including oil, oil products, ferroalloys, coal, uranium, wheat, and other goods. In 2023, Kazakhstan’s exports to the EU were worth $41.4 bln, of which $388.7 mln was for carbon-intensive goods.

AMERICAS

TVA trouble – In a Mar. 25 letter, the US EPA said an environmental review prepared by the Tennessee Valley Authority (TVA) for the retirement of the Kingston Fossil Plant is inadequate. EPA called for portions of the final review to be revised and made available for public comment in a supplemental environmental impact statement (EIS). TVA, the nation’s largest public power utility, plans to retire the nearly 70-year-old plant by the end of 2027 and replace it with a natural gas-fired plant with a capacity of 1,500 GW.

Compost support – Senate Bill 1135 (SB 1135), which would establish a California Compost Tax Credit Fund and transfer 1% of the annual proceeds of the Greenhouse Gas Reduction Fund to the new tax credit fund, is scheduled for a hearing on Apr. 9 at the Senate Natural Resources and Water committee. The bill would mandate the appropriation beginning the fiscal year 2025 through FY2035.

WY carbon capture – Wyoming-based utility Rocky Mountain Power, owned by PacifiCorp, signed a memorandum of understanding with US technology developer 8 Rivers Capital and South Korean multinational firm SK Group to perform an engineering study on the utility’s existing power plants to determine the best site for a carbon capture project, reported local news outlet Cowboy State Daily. Governor Mark Gordon (R) said the announcement gives an extended life to the state’s coal-fired power plants, citing recently-signed Senate File 42, which allows utilities to delay installation of carbon-capture retrofits for coal-fired powerplants until 2033 and permits rate recovery from electricity customers.

Oh, well – Colorado’s Senate Bill 159 (SB 159), which would require the Energy and Carbon Management Commission (ECMC) to phase out new oil and gas permits beginning Jan. 1, 2028, has been postponed indefinitely following pushback heard at the Agriculture and Natural Resources Committee regarding the economical impact of imposing such restrictions. Opponents contended that cutting supply instead of reducing demand will hurt low- and moderate-income residents in Colorado without necessarily slashing emissions.

Polluters pay  – A bill in Vermont titled as the “Climate Superfund Act” that would require fossil fuel companies to pay for a share of damage caused by climate change nears passage in the Senate before it is considered in the House, following a 21-5 vote on Friday. S 259 would legislate the Vermont state treasurer to provide a report by Jan. 15, 2026, on the total cost to residents and the state from GHG emissions from Jan. 1, 1995, to Dec. 31, 2024. Democrats currently control both chambers of the state legislature under Governor Phil Scott (R).

CCUS opportunity – Graduate students and early career professionals who are interested in CCUS are encouraged to apply for the 2024 Research Experience in Carbon Sequestration programme organised by the DOE’s Office of Fossil Energy and Carbon Management. The programme will discuss key research, development, and demonstration projects, as well as commercial deployment trends, engagement strategies, and how policy and business drivers impact the field. Applicants should have backgrounds in geology, chemistry, engineering, natural sciences, hydrology, physics, business, communications, and related fields. The programme which will be held July 21-30, 2024 in Colorado and Wyoming. Enrollment is limited to 32 participants and is tuition free, with applications due by May 15, 2024.

Brazil-France agreement – The Brazilian National Bank for Economic and Social Development (BNDES) signed Thursday with the French Development Agency (AFD) a R$1 bln ($198 mln) agreement to finance green projects and sustainable infrastructure in the Legal Amazon, as well as the northern and northeast parts of the country. According to the agreement, the funds may be invested in the sectors of low-carbon transport and mobility, waste management, water and sanitation solutions, sustainable agriculture and livestock, forestry, food and biomaterial production, renewable energy generation (storage, transport and distribution), bioeconomy, or sustainable infrastructure. The parties also agreed to expand new technical fronts to their existing cooperation to help support the BNDES’ sustainable finance agenda. The agreement came during a visit by French President Emmanuel Macron, during which the two countries also announced a €1 bln investment plan to ramp up the Amazonian bioeconomy.

VOLUNTARY

Not transparent enough – A report by Carbon Market Watch analysed the public availability of project documentation across the four main voluntary carbon market registries and found discrepancies, inadequate rule-setting and a lack in transparency. A total stratified sample of 140 projects were evaluated, drawing a maximum of seven projects representing the six largest methodologies by issuance volume from the standards VCS, Gold Standard, ACR, and Climate Action Reserve. Multiple projects in Gold Standard in particular were found to be lacking in identifiable public documentation. Furthermore, documents are routinely mislabelled, mis-categorised, duplicated or otherwise lacking in clarity, the report found.

AND FINALLY…

Your climate is what you eat – Healthier diets will increase the world’s chances of limiting global warming to 1.5C, reducing the need for carbon dioxide removal and CO2 reductions in the energy system, according to research by the Potsdam Institute for Climate Impact Research. It would also cut carbon prices, energy prices, and food expenditures, the researchers said, while a more flexitarian diet that consumes less meat and dairy would reduce methane emissions from ruminant animals that are raised for meat and milk, allowing the world to extend its CO2 budget by 125 bln tonnes to 625 bln tonnes. This, the study added, would provide a 50% chance of keeping warming to 1.5C. However, food policy decisions are often dispersed across different institutions and ministries, which make it harder to implement policies that drive healthier diets, the authors concluded.

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