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TOP STORY
Integrity Council approves three voluntary carbon programmes for CCP eligibility
Gold Standard, ACR, and Climate Action Reserve (CAR) have been given the green light by the governing board of the Integrity Council for Voluntary Carbon Markets (ICVCM) for their crediting programmes to be considered for the Core Carbon Principles (CCP) label, while Verra, ART TREES, Social Carbon, and Isometric will be assessed by May at the latest.
ASIA PACIFIC
INTERVIEW: Malaysia to release draft carbon offset mechanism for forestry sector soon
Malaysia is designing a carbon crediting system specifically for its forestry sector that it hopes to release before the country’s national steering committee in the second quarter of this year, the government body responsible for the mechanism said.
CN Markets: CEA price touches all-time high again amid loftier expectations
Chinese carbon allowances extended their record high again this week before retreating somewhat amid shrinking liquidity ahead of a national holiday, though market volatility is likely to increase given a lack of substantial demand from power plants.
South Korea looking for international emissions reduction projects to fund
South Korea is planning to allocate a budget of up to 10.9 billion won ($8.09 mln) to subsidise domestic companies that plan to develop emissions reduction projects abroad this year, as the government seeks to secure more international carbon credits.
Japan issues call for voluntary projects under JCM
Japan has issued a call for business proposals under the Joint Crediting Mechanism (JCM) with a total budget of 12.8 billion yen ($84.37 mln) for projects starting from this year, as the government aims to boost the supply of carbon credits under the bilateral framework.
AMERICAS
RGGI Market: Prices tumble in light of 2024 allowance distribution
RGGI allowance (RGA) values fell almost 10% this week in the secondary market, with most of the decline occurring after Tuesday’s release of permit distribution figures for 2024, traders reported, unseating prices from record heights reached last week at the end of the first quarter.
WCI Markets: CCA market awaits ARB as WCAs continue to rally on small volumes
California Carbon Allowances (CCA) saw a modest gain over the Mar. 28-Apr.3 period, as market participants await forthcoming developments on cap-and-trade rulemaking from regulator ARB, while Washington Carbon Allowances (WCA) continued to rally on small volumes.
US announces $20 bln in grants to mobilise private capital towards community-level climate action
The US Environmental Protection Agency (EPA) on Thursday announced the allocation of $20 billion in grants from the $27-bln Greenhouse Gas Reduction Fund (GGRF) to mobilise private investment in clean energy and other climate action, with the funding awarded to eight initiatives selected from two nationwide competitions.
California regulator ARB proposed cutting Scope 3 requirements from climate disclosure bill, document reveals
California regulator ARB recommended excluding supply chain emissions from the corporate climate disclosure law as it was being negotiated last year, recently acquired draft amendments showed.
Green group sues US DOE for funding California’s Diablo Canyon nuclear power plant extension
A network of green groups has filed a lawsuit against the US Department of Energy (DOE) claiming that the agency’s decision to fund the Diablo Canyon nuclear plant extension in California was based on a faulty environmental review.
California environental justice proponents pushback against CCS amid calls for cap-and-trade, LCFS improvements
Presenters at a meeting hosted by California’s Environmental Justice Advisory Committee (EJAC) on Thursday raised concerns about risks of CO2 capture and storage (CCS) measures, and also recommended alternative revenue distribution options for the cap-and-trade scheme to lower cost burdens on consumers.
UNFCCC calls for Brazil to improve accuracy of REDD+ reporting
Experts at the UNFCC have completed technical checks on Brazil’s higher submission of avoided emissions from forestry protection, recommending several improvements in the accuracy of REDD+ reporting, including mapping tree cover every two years.
Concerns over climate investor group breaching antitrust laws overblown -report
Concerns that the world’s biggest climate investor group’s approach breaches US antitrust and securities law have been overstated, a report by a financial services company said on Thursday.
VOLUNTARY
Organisations urge VCMI to backtrack on voluntary carbon flexi claim, call it “counterproductive”
Six organisations have published an open letter to the Voluntary Carbon Markets Integrity Initiative (VCMI), urging it to refrain from allowing companies to use voluntary carbon credits to address Scope 3 emissions.
FEATURE: Project to curb enteric methane emissions with feed additive enters pilot phase in Brazil
A project to reduce enteric methane emissions in Brazil through administering feed additive to cows should enter its pilot phase next month, led by a Santander-backed climate consultancy turned developer, which is also moving into the REDD+ voluntary carbon market.
Global Carbon Council launches new voluntary CCS methodology for hard-to-abate sectors
The Global Carbon Council (GCC) launched Thursday its wide-ranging carbon capture and storage (CCS) methodology after completing a consultation process that started in November.
Canadian carbon removal company adds Dutch DAC firm to growing roster of partners
A Montreal-headquartered carbon removal company announced Thursday that it will deploy a direct air capture (DAC) unit from an Amsterdam-based firm to scale the emerging technology in Canada.
Zero-emissions cookstoves developer targets Kenya for market launch, first voluntary credits
Problems with calculating how much charcoal an improved cookstoves carbon project uses could be consigned to the past with the launch of a new hydrogen-powered portable cooker that promises zero CO2 emissions.
Panelists agree on need for more US federal regulation of VCM, but split on extent
A panel of experts agreed on the need for increased federal regulation of the relatively young voluntary carbon market (VCM), but expressed different views on how and to what extent US authorities should tackle the VCM, in a webinar Thursday.
Voluntary carbon ratings agency co-founder steps down
The co-founder of a voluntary carbon market ratings agency has stepped down from their role at the firm to focus on other tools to fight climate change.
Major DAC developer’s top policy officer named new CEO of carbon removals non-profit
The chief climate policy officer of a direct air capture (DAC) technology developer based in Switzerland is moving on to become the CEO of an EU-based carbon removals (CDR) non-profit.
EMEA
EU fossil power generation continues collapse in Q1 2024
Power generation from EU fossil plants fell to even lower levels in the first three months of 2024 than seen last year, data showed, as EUA market participants mulled the impact of an extended collapse in demand for permits from the sector.
EU ETS free allocation rules adopted, hailed as “win-win for climate and business”
New rules on the free allocation of carbon pollution permits under the EU ETS became law on Thursday with their publication in the Official Journal of the European Union.
Euro Markets: EUAs snap three-day losing streak as firmer gas outweighs larger-than-expected 2023 emissions drop
European carbon prices showed little reaction on Thursday to the publication last night of verified emissions data for 2023, despite a larger-than-predicted drop, with the market garnering support from firmer TTF gas, while a modest reduction in investment funds’ short positioning failed to trigger a clear price move.
EU power sector association to help energy-intensive industries decarbonise
The electricity sector has joined forces with EU industries to simultaneously boost Europe’s decarbonisation and competitiveness, with an official ceremony taking place on Thursday.
France consults on new forest carbon certification methodologies
France has opened a consultation on proposed revisions to its ‘low-carbon label’ methodologies, concerning afforestation, reforestation, and the restoration of degraded agricultural land in French Guiana.
EU export credit policies lag behind on climate goals -report
EU member states are still lagging behind on reflecting Paris Agreement goals in export credit policies in what is a disregard for the climate decision they made two years ago, a report showed on Thursday.
Rooftop solar surge outpaces EU governments’ plans -report
Residential rooftop solar installations have soared across the EU since 2022, outpacing many governments’ policies and readiness, according to a report released on Thursday.
Scotland pitches private nature restoration incentives
The Scottish government is consulting on whether to legislate incentivising nature restoration on private land through financial support and advice.
INTERNATIONAL
EU, US to move forward on creating “transatlantic green marketplace”, raw materials club
The sixth ministerial meeting of the EU-US Trade and Technology Council (TTC) takes place on Thursday and Friday in the university town of Leuven in Belgium, with cooperation on green technologies and raw materials high on the agenda.
US will be the least impacted by CBAM, some goods may even benefit -study
The US will be the least affected out of most major economies by the EU’s Carbon Border Adjustment Mechanism (CBAM), and some of its exports may even gain more EU market share because of it, according to an analysis by a US-based non-profit organisation.
Last year’s renewable energy additions less than half what required to hit global climate goals
The 473 gigawatts of renewable power capacity added in 2023 marks a new record, but is less than half what is required to meet global climate and sustainable development goals at 1,000 gigawatts annually, with finance and grid bottlenecks presenting key bottlenecks, a new report finds.
57 fossil fuel and cement producers caused 80% of emissions since Paris Agreement, study finds
The majority of global CO2 emissions released into the atmosphere since the Paris Agreement was adopted in 2015 can be traced to a small group of fossil fuel and cement companies, according to analysis published on Thursday.
BIODIVERSITY (FREE TO READ)
Groups urge Australia govt to limit ministerial call-in powers in EPBC reforms
A number of stakeholders are urging the Australian government to reign in broad ministerial call-in powers being proposed under its reforms to the country’s environment and biodiversity protection laws.
Mining for critical minerals is putting African great apes at risk of decimation, study finds
Africa’s critical minerals mining boom could wipe out more than one-third of the continent’s ape population, with short-term offset plans failing to compensate for negative impacts, researchers have found.
Norwegian fund adviser raises concerns with Rio Tinto over deforestation
The ethics adviser to Norway’s sovereign wealth fund has engaged with mining giant Rio Tinto about the impact of a Brazilian organisation on deforestation.
Biodiversity Pulse: Thursday April 4, 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
Falling trees – Tropical forest loss still remains stubbornly high, with 3.7 mln hectares of primary tropical forest loss last year, despite significant declines in Brazil and Colombia, according to researchers from the World Resources Institute (WRI) and the University of Maryland. Brazil lost 36% less primary forest than the year prior, coinciding with the first year of President Luiz Inacio Lula da Silva, who has vowed to defend the Amazon and restore forest protections after former leader Jair Bolsonaro revoked environmental safeguards. The improvements to forest destruction in those two South American nations however were largely offset by increases in forest loss elsewhere such as in Laos, Bolivia, and Nicaragua, the researchers said. The Democratic Republic of Congo lost more than half a million hectares of primary forest for another year in a row. While wildfires also caused immense losses of tree cover, particularly in Canada, which experienced record-breaking blazes. (France24)
EMEA
SBTi progress – Nordic fuel producer Fortum is moving forward with its commitment to set targets in line with the Science Based Targets initiative (SBTi), and has completed the due diligence process after submitting the official commitment letter to the initiative. Its March 2023 strategy already stated that it would commit to SBTi. The company will now continue to advance its transition plan and to define near- and long-term company-wide emissions reduction paths in line with and validated by the SBTi. The plan will include an exit from coal and emissions reduction in its own operations, as well as its electricity sales footprint. To align with the SBTi, Fortum needs to halve its GHG emissions by 2030 and achieve net zero by 2050.
Battery boost – Startups in the battery value chain will be able to more easily access public funding via the ‘One-Stop-Shop to EU Finance’ service led by EIT InnoEnergy and supported by European Commission Vice President Maros SefcoviC who leads the European Battery Alliance. The service will advise on how to access public funding more efficiently and can act as a catalyst for private investment. The programme is now open for applications across the full battery value chain, from raw materials extraction to recycling. It follows the launch of the EBA Strategic Battery Materials Fund in Jan. 2024, which leverages private finance to support early-stage projects upstream of the value chain.
Cleaner trucks – Transport and shipping companies are among large corporates calling on the EU to adopt new regulations that would result in a 90% emissions reduction from new trucks by 2040, it was announced today. The European Parliament will vote on the standards, which would impact trucks and coaches weighing more than 7.5 tonnes, on Apr. 10. Companies to back the call include DHL Group, Nestle, and IKEA, with many of the companies in the cohort already having committed to more ambitious CO2 reduction targets to transform their own fleets. A strong policy signal from the EU would help to rapidly increase the number of zero-emission trucks available on the market, while also bringing down technology costs and vehicle prices, putting their goals within comfortable reach, the companies note.
ASIA PACIFIC
See you in court – The Australian Conservation Foundation and Mackay Conservation Group have begun legal action seeking the refusal of Whitehaven Coal’s Winchester South thermal and metallurgical coal mine, in the Queensland Land Court, they announced. The groups will argue the court should recommend no mining lease or environmental authority be granted to the project – Australia’s largest proposed new coal project – due to its significant environmental and human rights impacts. The groups estimate the project will emit 583 MtCo2e of Scope 1-3 emissions, clear at least 2,000 ha of wildlife habitat, and have unacceptable impacts on water resources such as the Issac floodplain. The two groups will be represented by legal group Environmental Defenders Office.
Shipping hydrogen – Japanese construction firm JGC Holdings Corporation has won the contract for a green hydrogen and MCH (methylcyclohexane) plant in Malaysia. The plant is expected to begin its commercial operation by 2030, and will produce approximately 90,000 tonnes of CO2-free hydrogen per year for conversion to MCH, a liquid organic hydrogen carrier, according to GasWorld. When hydrogen is needed for applications such as chemical synthesis or fuel cell manufacture, it can be stored inside MCH as a way to transport and store the gas safely. The MCH will be used to transport the hydrogen via ship to sites across Japan.
Small steps count – China could potentially achieve its climate goals faster by targeting a small number of ‘sensitive intervention policies’ in its major cities, according to a study by researchers from the University of Oxford and The Chinese University of Hong Kong. Leveraging the global cost declines in renewable energy was identified as a shared accelerated carbon neutrality pathway for both Beijing and Hong Kong, the study has argued. Policies focusing on transport electrification and building energy efficiency could also pay large dividends in the two cities, the paper said.
Greener trips – West Japan Railway Company has been trialling a special offsetting programme for business travellers through collaboration with electronics giant Sharp and lingerie maker Wacoal, it announced this week. The companies aim to purchase domestically issued J-Credits to offset emissions from business trips. Offset suppliers selected for the initiative include the National Federation of Forest Owners’ Co-operative Association and the Japan Cool Vege Association.
AMERICAS
CO2 pipeline leak – A CO2 pipeline leak in Sulphur, Louisiana on Wednesday led to the issuance of a shelter-in-place order for residents, local media Lake Charles KPLC reported. The order was issued because wind was keeping the released gas close to the ground. The pipeline is situated within the largest CO2 pipeline network in the US, owned and operated by Denbury, which was recently acquired by ExxonMobil for $4.9 bln. The Calcasieu region has seen significant interest and investment for its carbon capture and storage potential, including $603 mln from the DOE for Project Cypress, a DAC hub led by Batelle, Climeworks, and Heirloom, as well as the announcement of the Evergreen Sequestration Hub, led by Trace Carbon. The EPA granted the state of Louisiana authority to permit and regulate CO2 wells, also known as Class VI wells, in Dec. 2023. State authorities now oversee over 20 Class VI well applications.
CO2 pipeline bill fails – California Assemblymember Joaquin Arambula (D) pulled his bill to add safety regulations for CO2 pipelines ahead of its first hearing that was scheduled for Wednesday. AB 2623 would have added more regulations to CO2 transported by pipeline in the state of California, including the mandate that CO2 transported by pipeline should only be transported through pipelines built specifically for that purpose, and for the State Fire Marshall to adopt regulations governing design, public and environmental safety, operations, maintenance, and reporting requirements. Arambula told E&E News that community groups had asked him to “hold off for now” and does not plan to move the bill forward this year.
Thank you EVs – Researchers at UC Berkeley found a steady decrease in CO2 emissions in the San Francisco Bay Area of about 1.8% each year between 2018-2022, owing to passenger vehicle electrification, according to research published in peer-reviewed journal Environmental Science & Technology on Thursday. The group installed a network of 57 sensors as part of its Berkeley Environmental Air Quality and CO2 Network, and used a combination of observations and weather to estimate CO2 emissions, notably at a cost of less than $10,000 each, in comparison to EPA pollution monitoring stations at 20 times the cost.
Farming funding – The USDA will make up to $1.5 bln available for projects that will help farmers, ranchers, and forest landowners advance conservation and climate-smart agriculture, and is accepting proposals until July 2. The investment is made available through the Farm Bill and the Inflation Reduction Act.
VOLUNTARY
CDR acceleration – The non-profit Remove has selected 20 start-ups working on carbon removals (CDR) to join its Cohort 6 accelerator programme, Remove announced on Thursday. Each start-up will begin with a 10-week phase during which they will receive support and guidance, and receive a €5,000 grant upon completion. The support includes one-on-one coaching with Remove’s co-founders to address individual challenges, and sessions with external experts covering issues such as CDR policy, life cycle assessment, fundraising, and monitoring, reporting, and verification, it said. Over 120 CDR start-ups have passed through Remove’s accelerator programme and secured over €200 mln in funding.
SCIENCE & TECH
Salt will save us – The USA’s first outdoor test to limit global warming through solar radiation modification, a form of geoengineering, took place on Tuesday in the San Francisco Bay, the New York Times reported. The experiment, led by researchers at the University of Washington, was surrounded in secrecy and caught experts off guard. The Coastal Atmospheric Aerosol Research and Engagement project will shoot trillions of sea salt particles into the sky in an effort to increase the density — and reflective capacity — of marine clouds, ultimately to reflect sunlight away from the Earth. It will continue to take place on USS Hornet Sea, a decommissioned aircraft carrier, until the end of May.
AND FINALLY…
Blame the termites – A little-known greenhouse gas is slowly building up in Earth’s atmosphere, and a large chunk of those emissions come from California, a state with otherwise aggressive GHG reduction targets. That’s according to a new study that tracked US emissions of sulfuryl fluoride, a pesticide commonly used to treat termites and other household insects. The colourless gas is effective at treating bugs, but it has an unintended side effect: It has a warming effect on the planet when it leaks into the atmosphere. Studies suggest that as much as 17% of the world’s sulfuryl fluoride emissions may come from the US. And the new study, published Wednesday in the journal Communications Earth & Environment, suggests that 60-85% of those emissions are trickling out of California. The study analysed data from NOAA’s Global Greenhouse Gas Reference Network, which collects air samples from monitoring stations or aircraft around the world. The program keeps tabs on the atmospheric concentrations of dozens of different GHGs, sulfuryl fluoride included. (E&E News)
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