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WEEKEND READ
FEATURE: Carbon ‘currency’ increasingly seen on balance sheets, social metrics
Carbon is slowly becoming an underlying unit of value in climate-related calculations across several sectors, prompting finance-based legal and regulatory frameworks to face new challenges and adapt, experts told Carbon Pulse.
ASIA PACIFIC
Indian govt venture puts Verra-issued voluntary carbon credits up for sale for domestic buyers only
A joint venture under the Indian government has for the first time issued a tender to sell voluntary carbon credits issued by Verra (VCUs), but only to domestic buyers.
Laos suspends REDD+ carbon project approvals
The forestry department of the People’s Democratic Republic of Lao has put a temporary halt on all current and upcoming applications for REDD+ carbon projects, according to documents seen by Carbon Pulse.
AU Market: Integrity concerns, compliance shift sees ACCU spot prices converge
Generic and human-induced regeneration (HIR) Australian Carbon Credit Unit (ACCU) spot prices have converged in recent days, in part due to integrity concerns stemming from last week’s Nature study as well as the shift to a compliance market, according to traders and analysts.
Australian low-emissions wood pellet producer secures 30-year lease for NZ facility
An Australian company has secured a 30-year lease agreement in New Zealand where it intends to build a NZ$300 mln ($180 mln) plant producing wood pellets that when burned emits 95% less carbon than coal.
LNG partners team with fertiliser player for CO2 storage in Western Australia
A CCS joint venture has partnered with a fertiliser producer to consider CO2 capture in a major industrial region in Australia, using a depleted gas field for storage.
AMERICAS
US SEC issues stay of reinstated climate disclosure rules pending judicial review
The US Securities and Exchange Commission (SEC) issued a stay on Thursday of its contested climate disclosure rules to avoid potential regulatory uncertainty, but vowed to defend the validity of the measures in ongoing litigation.
INTERVIEW: Corporate action on Scope 3 emissions to prevail despite limited SEC climate disclosure rules
Corporate ambition to report on supply chain emissions will remain robust despite the notable exclusion of Scope 3 reporting requirements in the US Securities and Exchange Commission’s (SEC) climate-related financial disclosure rules, according to an agricultural consultancy.
California carbon capture project halted, permits withdrawn following EPA order
A proposed biomass and carbon capture project in California’s Central Valley has been halted following the withdrawal of its federal and local permits after discrepancies were identified by the US Environmental Protection Agency (EPA).
Carbon capture technology firm wins financial backing from US oil giant
A Colorado-based carbon capture firm this week announced investment from a US oil major and investment firm to help deploy its CCS technology in hard-to-abate sectors.
Argentina set on carbon markets but other Latin American countries falter -analysts
Argentina’s new government is pursuing voluntary and compliance carbon markets by any means possible, but other Latin American countries are struggling to operationalise adequate legal and technical infrastructure, according to regional experts on a webinar.
Manitoba government introduces CCUS project legislation
Manitoba’s provincial government on Thursday proposed a regulatory framework for underground storage of CO2 that details necessary permits, licensing, and ownership related to carbon capture, utilisation, and storage (CCUS) projects.
WCI compliance instrument surplus continues to expand through Q1 2024
The WCI compliance instrument surplus continued to build in Q1 as the market entered the final year of the fourth trading period, government data published Thursday showed.
Traders reduce exposure in RGGI and Washington carbon markets, CCAs remain in favour
Emitters are favouring longer-dated California Carbon Allowances (CCA) while speculators widened their net length with V24 CCA additions, though both groups reduced their exposure in RGGI and Washington carbon markets, according to data published Friday by the US Commodities Futures Trading Commission (CFTC).
AVIATION/SHIPPING
CORSIA-linked voluntary carbon trade to remain stunted due to low supply, lack of clarity
The trade of voluntary carbon credits and financial products linked to the current phase of the CORSIA international aviation offsetting scheme is expected to remain low in volume due to perceptions that the market is not yet ready to scale, according to a panel of industry experts.
Marine consortium launches carbon insetting programme for greener shipping -media
A carbon insetting programme for zero-emission shipping has been launched by a consortium of maritime organisations aiming to draw up methodologies for greener ships.
EMEA
EU “trailing behind” UK on CCS policy, industry group says
The European Commission “really needs to step up its game” when it comes to putting together a supportive policy framework for carbon capture and storage (CCS) technology, according to an industry association.
France and Germany launch associations to boost CDR technologies as EU grapples with climate targets
French and German companies are gearing up for the possible inclusion of carbon dioxide removal (CDR) units within the EU Emission Trading System (EU ETS).
Euro Markets: Late surge of buying sets 5-day high, trims EUAs’ weekly loss after “sleepy” start
European carbon allowances rose to their highest levels of the week at the end of Friday trading, trimming the weekly loss to 2.2% as participants cleared their positions ahead of the weekend, after a “sleepy” morning saw the market move in a very narrow range, while energy prices also posted sharp gains late in the day.
VOLUNTARY
Climate Impact X launches standardised ARR contracts
Singapore-based carbon exchange Climate Impact X (CIX) has launched two standardised contracts for nature-based removal credits in the afforestation, reforestation, and revegetation (ARR) market, it announced Friday.
German carbon removals firms inks MRV agreement with Kenyan DAC developer
A Germany-headquartered climate tech company, focused on durable carbon removals, has signed partnership with a developer of direct air capture (DAC) projects based in Kenya to provide digital monitoring, reporting, and verification (dMRV) to one of its projects.
Africa-focused carbon project developer hunting for new CEO
An Africa-focused carbon project developer is hunting for a new CEO as its current chief executive transitions to two different, concurrent roles.
BIODIVERSITY (FREE TO READ)
Indigenous participation in biodiversity markets might exclude credits -specialist
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Premium job listings
- Technical Advisory Committee Member, Plan Vivo Foundation – Remote
- Climate Policy & Market Specialist (f/m/d), KAYA Climate Solutions GmbH – Berlin
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- Forest Carbon Specialist, Perimeter Forest Limited Partnership – Remote
- Feature Writer/Sub-Editor, Carbon Pulse – North America
- Environmental Markets Correspondent, Carbon Pulse – Latin America
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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.
Eurelectric “Lights ON” Power Summit – May 22-23, Lagonissi, Greece: This is our biggest event gathering every year around 500 energy experts across Europe. This year, we’ll welcome more than 60 speakers to discuss:
- Getting Europe’s power infrastructure ready for net-zero
- Delivering on the EU 2040 climate targets
- Powering Europe’s industrial competitiveness with affordable energy
- Ensuring security of supply in more hostile energy geopolitics
- Implementing the electricity market reform
- Speeding up digitalisation
- Integrating renewables with biodiversity
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
Global persuasion – The US sent a letter to WTO members Thursday urging them to consider climate-related trade measures more carefully and calling for increased cooperation on the topic. Noting the proliferation of such measures, the letter calls for increased discussions and attention on how to make these efforts complement each other, to the extent possible, and prevent them for acting at cross purposes. A recent study from a US-based non-profit found that the country will be the least affected out of most major economies by the EU’s carbon border adjustment mechanism (CBAM), and some exports may even gain more of market share in the bloc.
EMEA
French solar boost – The French government announced new measures on Friday to accelerate solar PV deployment and domestic production on its territory. On the production side, French economy minister Bruno Le Maire announced two gigafactory projects – Carbon and Holosolis – representing respectively €1.5 bln and €700 mln in total investments that will be eligible for a green tax credit this year. On the deployment side, new targets were announced to reach 6 GW/year of added capacity, up from 3.2 GW in 2023, with new support measures for rooftop PV and agrivoltaics. The overall objective is to reach 100 GW production by 2050, with the possibility of bringing the target forward to 75-100 GW by 2035, Le Maire said. A press release is available here. More details in the speeches of Economy Minister Bruno Le Maire here and Industry Minister Roland Lescure here.
Millions for homemade hydrogen – The European Commission has approved, under EU State aid rules, a €350 mln German scheme to support the production of renewable hydrogen through the European Hydrogen Bank’s Auctions-as-a-service tool. The approved scheme will support the construction of up to 90 MW of electrolysis capacity and is expected to result in the production of up to 75,000 tonnes of renewable hydrogen. Germany has set a target of having at least 10 GW of domestic electrolysis capacity by 2030. The aid will be awarded through a competitive process supervised by the European Climate, Infrastructure, and Environment Executive Agency (CINEA). The bidding closed on Feb. 8 and the Agency is currently assessing and ranking bids for projects in all Member States.
Czechs in trouble – Czechia’s investment support granted to certain large Czech agricultural companies in 2017 and 2018 is not in line with EU state aid rules, the European Commission said. The country must now recover the incompatible state aid, plus interest. The Commission started the investigation to assess whether aid granted by Czechia in 2021 for investing in irrigation and the restructuring of orchards was in line with the State aid rules in agriculture, forestry, and rural areas and found that the aid may have distorted competition. As the companies were large, they should not have received the aid because it was reserved for medium-sized enterprises (SMEs).
Wanted: African climate scientists – Africa needs to step up investment in climate science education to adapt more effectively to global warming and build resilience, according to an article published in the scientific journal Nature Communications. Recent improvements in weather prediction and climate science services “has not been reflected in Africa as it has in other parts of the globe,” reads the article, cited by News24. With most researchers and research drawn from the developed world, “it will not be sufficient to simply impose solutions which work in the Global North,” it warns. The paper found gaps in scientific research, data access, modelling and forecasting, capacity building, knowledge management, as well as communications. Science “that supports a good provision of weather, water and climate services is urgently needed for an adaptation strategy and will contribute towards resilience,” argue the authors.
ASIA PACIFIC
Plan of action – The Australian government has released its National Energy Performance Strategy, which it said will help empower Australians to improve energy performance and have better access to energy-saving upgrades. The strategy provides a long-term framework to manage energy demand and will contribute to the government meeting its legislated emissions reduction and renewable energy targets, according to the government. Some A$15 mln ($9.8 mln) will be invested between now and 2026 to develop, evolve, and distribute the strategy, it said.
AMERICAS
Fixing pipes to protect lives – The Biden Administration on Friday announced $392 mln in grants to assist 130 projects that seek to fix aging natural gas pipelines, which the White House said will decrease air pollution and reduce costs for ratepayers across 26 states. The funding is made available from the Natural Gas Distribution Infrastructure Safety and Modernization (NGDISM) grant programme under the Bipartisan Infrastructure Law. NGDISM offered nearly $1 bln in funding over the course of five years to modernise community-owned natural gas distribution pipe. The administration has so far awarded $8.5 mln of the $392 mln to two projects in North Carolina, with additional announcements to follow in upcoming weeks.
Here to listen – The US Environmental Protection Agency (EPA) and the New York State Department of Environmental Conservation (DEC) on Friday announced a series of environmental justice listening sessions as part of their efforts to support state and federal environmental justice programmes. The first session will take place on Apr. 15, where participants will be able to raise local environmental concerns and hear from the agencies regarding available grant and technical assistance opportunities.
Louisiana CCS – A suite of carbon capture and storage bills did not pass Louisiana state’s House Natural Resources & Environment Committee on Thursday, while one moved forward to House floor with an amendment. HB 276, which requires that CCS projects comply with local land use and zoning ordinances; HB 280, which prohibits permitting of structures that protrude above the surface of Lake Maurepas and Lake Ponchartrain; HB 289, which prohibits CO2 injection wells (Class VI wells) in Caney Lake, Lake Maurepas, Lake Ponchartrain and Toledo Bend Reservoir; and HB 389, which places a moratorium on CCS below Lake Maurepas and the Maurepas Swamp Wildlife Management Area, all failed to pass committee. HB 516, which stipulated emergency response plans, community notification systems, maps and locations of CCS facilities, and groundwater monitoring, moved to the floor for further amendments and debate.
VOLUNTARY
Three for six – The Royal Bank of Canada (RBC) committed to disclose relative levels of financing for low-carbon energy versus fossil fuels, known as its green financing ratio, only after seeing Citigroup and JPMorgan agreed to do the same earlier in March, the Canadian Press reported Wednesday. The measure is a product of New York City Comptroller Brad Lander’s resolution filed at six banks, the remaining institutions being Morgan Stanley, Bank of America, and Goldman Sachs. RBC’s board of directors initially rejected the proposal in its proxy circular, saying the metric was premature and that the bank disclosures provide sufficient transparency. RBC has now committed to release the ratio in its 2024 climate report. Research group BloombergNEF figured in its latest report that RBC provided 37 cents in clean energy funding for every dollar to fossil fuels, while banks need to reach a ratio of 4:1 by 2030 to limit warming to 1.5C.
New listing – Carbon removal credits generated by biochar developer Novocarbo are now available on the Puro.earth online marketplace for purchase. Novocarbo removes atmospheric CO2 through the production of biochar from waste wood biomass, with the carbon-neutral heat generated in the process reused in industry. The biochar is subsequently used to enrich soils, in animal feed, or in real estate. Novocarbo recently raised €25 mln in growth funding from SWEN Capital Partners to go towards developing European carbon removal parks, aiming to remove 1 mln tonnes of CO2 by 2030.
Big talk – Puro.earth also expects to certify 400,000 removals credits, or CORCs, in 2024, its CEO told Reuters. To date, around half of this figure (202,800) have been retired, according to the removal standard and certifier’s website. “We are going to see 100%, or nearly 100%, compound average growth rates during the next three years,” Antti Vihavainen said.
Reductions vs Removals – Verra is launching a public consultation for a minor revision to VM0042 Methodology for Improved Agricultural Land Management, v2.0 in the VCS Program. With this proposed revision, project proponents will be able to differentiate between Verified Carbon Units (VCUs) based on CO2 removals and VCUs based on GHG emission reductions. VM0042 includes the quantification of both emission reductions and removals, yet does not currently allow proponents to differentiate between these outcomes and quantify the exact number of VCUs resulting from reduction or removal activities. The updates will allow proponents to be able to do so and also to apply the appropriate mitigation outcome label to VCUs generated by their projects. Feedback can be provided here.
Too much to handle – Due to increased demand, voluntary carbon accreditation body ICROA is seeking an additional third-party assessor to support its ‘Carbon Crediting Endorsement Programme’, it said Friday. The successful applicant will work alongside the existing auditor, applying standard auditing practices and techniques, and providing independent recommendations for endorsement to the ICROA Secretariat. The body recently refreshed its best practice code for the voluntary carbon market as it aims to keep pace with rapid changes in the space.
AND FINALLY…
The cosmic ballet goes on – The US and Canada are bracing for a significant test of its electric grid’s resilience to solar power fluctuations during an upcoming solar eclipse that will cast a shadow across North America. This event will starkly reduce solar capacity, with Texas potentially losing over 90% of its solar power, affecting the equivalent of 2.8 mln homes, Politico reports. Even regions far from the eclipse’s path could experience a halving of solar power generation. Grid operators, however, have prepared for months and assure they can manage the shortfall. This eclipse serves as a practical drill for handling unforeseen solar output drops caused by events like winter storms or wildfires. Energy departments will closely monitor the grid’s response, providing valuable insights into managing solar power dips amidst growing reliance on solar energy, which has tripled in the US since the last solar eclipse in 2017 and now represents over 4% of the country’s total electricity generation.
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