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TOP STORY
POLL: Analysts again slash EUA price forecasts amid no signs of demand recovery
Analysts have once again cut their outlook for EU carbon prices, slashing their near-term forecasts by 10-15% on a mix of weak demand and ample supply.
EMEA
Clearer definitions given for carbon farming under EU carbon removal framework
Clearer definitions for the scope, quantification, and baselines of carbon farming activities to be included under the EU’s Carbon Removal Certification Framework (CRCF) were presented by the European Commission on Tuesday.
EU nations call for sustainable carbon policy package for chemicals
Some EU member states are calling upon the European Commission to put forward a policy package on sustainable carbon for the chemical industry, according to a joint statement they delivered to the commissioner in charge of climate action, Wopke Hoekstra, in Brussels on Tuesday.
Thermal power in Russia to keep on dominating energy mix in next decade
Thermal power will continue to dominate Russia’s annual generation mix from 2024-35, according to a data and analytics company.
Emissions reduction technology firm signs agreement with SAF, biodiesel producers in Spain
A new biofuels plant in Spain will utilise industrial hydrotreating technology to reduce emissions in the production of sustainable aviation fuel (SAF) and biodiesel, the companies announced Tuesday.
Euro Markets: EUAs add 4.4%, record 25% climb in two weeks as rising gas, short-covering drive rally
European carbon allowance prices erased Monday’s losses and resumed their upward march, crowning a 25% rally in the last two weeks amid a continuation of short covering, as energy markets jumped sharply on Middle East tensions and interruptions in gas supply in both the US Gulf and North Sea.
AMERICAS
ANALYSIS: Environmental, economic interests converge in US federal CBAM bills
Proposals for various forms of a US carbon border adjustment mechanism (CBAM) are bringing together environmentally focused and economically inclined politicians from opposite sides of the political spectrum, offering a rare glimmer of hope for bipartisan agreement against an increasingly contentious climate-oriented global trade backdrop.
Canada budget targets C$2.5 bln small business carbon rebates, CCfD expansion
Prime Minister Justin Trudeau’s 2024 budget, released Tuesday, sees an overdue reimbursement of C$2.5 billion ($1.8 bln) in carbon tax rebates to small businesses, delivery of prior announced investment tax credits by the end of 2024, and commits to exploring additional carbon contracts for difference (CCfDs).
Texas and California firms partner to develop SAF using waste CO2
A California low-carbon electrofuels (efuels) developer has agreed to purchase captured CO2 from a Texas energy firm to primarily produce sustainable aviation fuel (SAF), the companies announced Wednesday.
Brazilian bank allocates R$98 mln from Amazon Fund to combat deforestation
A Brazilian state will receive funding from the country’s development bank that manages the Amazon Fund to address illegal deforestation and forest degradation, according to a press release.
Carbon reporting standard for financial sector launches chapter in Brazil
An industry-led carbon accounting programme for financial institutions has teamed up with two of Brazil’s largest banks to promote measurement and disclosure of emissions from the Brazilian financial sector, according to an announcement Tuesday.
ASIA PACIFIC
Regional cooperation between ASEAN members can slash decarbonisation costs by $800 bln -research
Members of the Association of South East Asian Nations (ASEAN) can reduce their decarbonisation costs by $800 billion by 2050 if they work together to build power interconnectors, hydrogen networks, and energy storage infrastructure, according to research published Tuesday.
China thermal power growth slows in March, renewable energy generation expands
Growth in China’s thermal power generation slowed in March with a sustained high level of coal output, while the pace in wind and hydropower generation accelerated, government data showed Tuesday.
Carbon project developer, non-profit create tokenised ‘co-benefit unit’ to be attached to ACCU issuance
Australian Carbon Credit Units (ACCUs) issued to a project in Western Australia will be stapled to independently verified ‘co-benefit units’ tokenised on blockchain, according to its developers.
INTERNATIONAL
Bezos Earth Fund to award $100 mln for AI-based climate solutions
US-based Bezos Earth Fund on Tuesday announced $100 million available in grant awards for solutions that use AI to address climate change.
Philippines, Germany roll out €37-mln climate and biodiversity programme
Germany’s international development agency GIZ and the Philippines Climate Change Commission on Tuesday announced the soft launch of a programme aimed at protecting, conserving, and rehabilitating biodiversity and natural carbon sinks in the Southeast Asian nation.
CCUS investments may dampen profitability, if cheaper clean alternatives are available -report
Investments in carbon capture and utilisation or storage risk squeezing margins for businesses that use the technology to extend the life of polluting assets when cheaper alternatives are available, according to a research report by Moody’s.
Private investment and low cost finance critical in supporting emerging nations’ net zero transitions -panel
Finance ministries’ roles in developing a robust policy framework to provide necessary incentives for the private sector to support net zero transitions, coupled with low cost lending, will play a crucial role in assisting emerging nations’ climate goals, experts emphasised at a panel discussion Tuesday.
VOLUNTARY
SBTi Scope 3 decision could create a $1.1 trillion carbon market -BNEF
Annual demand for high quality carbon credits under the Science-based Target initiative’s (SBTi) proposed new Scope 3 emissions offsetting rules could reach 5.9 billion tonnes, according to analysts, despite the significant uncertainty caused by the backlash in the wake of the announced changes.
Verra announces VCS updates to support CORSIA, CCP eligibility
Verra released Tuesday what it called “minor” updates of its Verified Carbon Standard (VCS), hoping for full approval under Phase 1 of the international aviation offsetting scheme CORSIA, as well as being eligible for the Core Carbon Principles (CCP) label.
FEATURE: Exchanges, futures traders, regulators divided over how to make voluntary carbon prices transparent
The prospect of public pricing in the voluntary carbon market (VCM), potentially spurred by looming disclosure requirements, is provoking a range of reactions from market participants hinging on appetite for regulation, favourability toward transparency, and financial stake, experts have told Carbon Pulse.
International emissions trading association releases guidelines on carbon credit use
The world’s main emissions trading association published new guidelines on Tuesday about how corporate buyers should use carbon credits as part of their decarbonisation pathways.
Japanese trading company joins Louisiana-based DAC project, eyes 1 mln tonne carbon removals
A major Japanese trading company has announced its participation in a large direct air capture (DAC) project in the US, as it continues to seek opportunities in the carbon removal sector.
IEA, GenZero say tech-based carbon credits could be used to fund low-emissions hydrogen, SAF, DAC
High-quality carbon credits could be a “potentially important” tool to incentivise investment in low-emissions hydrogen, sustainable aviation fuel (SAF), and direct air capture (DAC) projects in order meet production targets required to achieve the world’s climate goals, a joint report released Tuesday found.
Better VCM data can help companies reach climate goals, experts say
An increasing availability of better-quality data in the carbon market is already helping companies get closer to neutrality, experts at IETA’s annual European Climate Summit in Florence said on Tuesday.
SHIPPING
Global commodities firm deploys real time emissions reporting tech on LNG carrier
A Singapore-headquartered global commodities trading house plans to deploy a Swiss firm’s technology for real time measurement and reporting of GHG emissions, the companies said Monday.
BIODIVERSITY (FREE TO READ)
Australia to introduce bill to establish EPA, but defers crucial environmental law reforms
The Australian government will introduce legislation to establish national environmental protection and information bodies, but has split reforms that would strengthen laws underpinning them into a separate tranche.
Biodiversity credit market must recognise many projects will not work -researcher
Buyers of biodiversity credits should purchase multiple units at once to overcome the issue of some single initiatives not offering actual nature uplift, a researcher has said.
Demand in biodiversity credit market set to rise, amid huge price range -research
An analysis of recent transactions under five voluntary biodiversity credit frameworks has found that prices vary massively, ranging from $7 to $41,000 per unit for a 100-year conservation period, with average rates expected to surge in the coming years.
New tool helps UK building developers address biodiversity impacts
Building developers in England will be able to more easily address the biodiversity impacts of their projects and comply with the biodiversity net gain (BNG) mandate thanks to the launch today of a new BNG software, which helps companies understand the biodiversity impact of different building designs.
EU, Greece to allocate €4.3 bln for protecting the ocean
The EU and Greece will invest a combined €4.3 billion in protecting the ocean and marine biodiversity, and promoting sustainability, they announced at the 9th Our Ocean Conference in Athens.
Biodiversity Pulse: Tuesday April 16, 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.
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 and Online: 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
EMEA
Heat pumps for France – Economy minister Bruno Le Maire presented an action plan on Monday (April 15) to produce 1 million heat pumps in France every year by 2027, leading to the creation of 45,000 additional jobs, including 30,000 for installers. “Producing in France means emitting less GHG than if we imported our products, thanks to our carbon-free electricity,” Le Maire said as he presented the action plan on Monday. There are currently 27 industrial sites in France producing fossil fuel boilers, 21 of which are already manufacturing heat pumps. Four projects along the manufacturing supply chain are currently under review to obtain a tax credit for green investments worth nearly €246 mln, he said. With the average heat pump costing about €14,700, households will also be able to get up to €9,000 in aid to replace their fossil fuel boiler, Le Maire added. More details here.
Solar support – The European Commission is bolstering its efforts to support the European solar sector by way of the European Solar Charter, which sets out a range of voluntary actions to be undertaken to support the EU solar PV industry. The charter was signed today in the margins of the informal Energy Council meeting by the Commission. Charter signatories commit to supporting the competitiveness of European PV manufacturing and promoting the creation of a market for high-quality products meeting sustainability and resilience criteria. The European Solar Charter marks the latest step in the Commission’s actions to support solar panel manufacturing in Europe, with previous measures including a proposal for a Net-Zero Industry Act and establishment of the European Solar Photovoltaic Industry Alliance.
Report card for lobbyists – The European Court of Auditors has revealed some transparency blind spots in the EU’s lobbying system. Lobbyists are increasingly signing up to the EU transparency register, but spontaneous meetings and most EU staff are still exempt from transparency rules, the report found. Auditors also warn about the risk of NGOs’ funding sources remaining opaque. They also warned that the EU transparency register must be bolstered so that it doesn’t turn into a “paper tiger”.
Stronger together – The Greens aim to team up with other pro-European forces after the June elections to join the ruling majority in the European Parliament, in order to prevent the Green Deal from being watered down due to strong critique from businesses. The current ruling majority in the Parliament consists of the centre-right European People’s Party (EPP), the Liberals, and the Socialists. Lead candidate of the European and the German Greens, Terry Reintke said that negotiations will be particularly difficult with the EPP and its German CDU/CSU member, which recently attempted to boycott many of the European Green Deal’s larger files. “We are currently facing the question of whether this European election will enable the CDU/CSU and right-wing forces to bring down the Green Deal or whether we will manage to make the Green Deal a success,” the Green lead candidate stressed. (Euractiv)
Sprinkling rock for carbon – Farmers in Northeast England are being given volcanic rock to spread on fields with the hope that it will boost yield and increase soil carbon, the BBC reports. Manufacturer UNDO is giving farmers the fertiliser free of charge to encourage take up, and is monetising the related carbon sequestration through the sale of carbon credits on the VCM. The project in Northeast England follows a Newcastle University study, which found that basalt rock powder offered a potential yield increase of up to 22% while helping to capture carbon. Volcanic rock is easily accessible in many parts of the UK, including Northeast England, as the rock is sourced as a waste product of quarries and subsequently ground into a powder, which sucks up CO2 from the atmosphere during rainfall in a process known as enhanced rock weathering (ERW).
Cutting through complexity – The Kenya Private Sector Alliance (KEPSA) has partnered with the World Bank to launch the Carbon Market Guidebook for Kenyan Enterprises at a stakeholder event in Nairobi held on Monday (April 15). The guidebook aims to provide step-by-step guidance for Kenyan enterprises in industries such as agriculture, waste environment, forestry, trade, banking, insurance, manufacturing, energy, transportation, construction, and hospitality to navigate the complex landscape of carbon markets. The guidebook provides information about carbon market regulations and is designed to help companies contribute to emissions reductions while also fostering economic growth.
ASIA PACIFIC
Hand in hand – Taiwan’s Industrial Technology Research Institute (ITRI) has teamed up with Japan’s Mitsubishi Electric to jointly develop negative-emissions technologies, such as those associated with carbon capture, utilisation and storage (CCUS) as well as low-carbon hydrogen production, the state-backed institute announced Tuesday. The alliance will also work on the development of a decentralised energy management system, in order to help domestic industries create a green ecosystem and help the island achieve net zero emissions by 2050, ITRI said.
Go Volvo – Volvo has announced that it has achieved climate-neutral status at its Taizhou manufacturing plant in China by switching to biogas, reducing CO2 emissions by over 7,000 tonnes annually. This move is part of Volvo’s goal to have climate-neutral manufacturing operations globally by next year and achieve net zero greenhouse gas emissions by 2040. The Taizhou plant joins Volvo’s Torslanda facility in Sweden as the company’s second climate-neutral car plant. The plant’s energy supply includes solar panels for 40% of electricity needs, with plans to increase this share, plus biogas for heating. (IOL)
AMERICAS
Sheinbaum’s scheme – Leading Mexican presidential candidate Claudia Sheinbaum from the left-wing Morena party plans to spend around $13.6 bln to bolster the country’s use of renewable energy while still adding gas-burning power plants, reported Bloomberg. The plan would contrast with policies of the current officeholder, Andres Manuel Lopez Obrador, who has instead prioritised backing state oil firm Pemex. At the North American Carbon World (NACW) in March, CEO of consultancy MexiCO2 Eduardo Piquero told attendees that regulations for a national ETS in should not be expected until a new presidential administration takes over in October, with the original June 2023 target deadline having already passed.
Duke’s demand problem – Duke Energy CEO Lynn Good said Tuesday that the company’s carbon cutting goals are being pressured by growing electricity demand for manufacturing and AI purposes, reported Bloomberg. Charlotte-headquartered Duke – which serves parts of the US Southeast and Midwest – has set a goal to close all its coal-fired power plants by 2035 and to reach net zero carbon emissions by 2050.
Geothermal exclusions – The Bureau of Land Management (BLM) on Monday announced that it has adopted categorical exclusions to expedite geothermal energy permitting to improve permitting of geothermal exploration on public lands. Under National Environmental Policy Act (NEPA), categorical exclusions define activities that as a whole have been determined to pose no significant risk to the quality of the human environment, alleviating the need for environmental assessments part of the permitting process when necessary. The categorical exclusions adopted this week apply only to geothermal exploration operations on public land, BLM noted, adding that subsequent development of a geothermal resource would require additional NEPA analysis. While considering permits for notices of intent to explore for geothermal resources, the BLM can now use either the Forest Service or Navy categorical exclusion to support its decision. But the agency will also examine each permit request to establish whether an environmental assessment is required, it said.
VOLUNTARY
Sharing is caring – Arup and the Open Data Institute (ODI) have today announced a three-year partnership renewal focused on carbon data sharing in the built environment. The partnership aims to reduce friction between industry actors around carbon and to improve data flow across the value chain. It also aims to help those in construction to unleash the innovation, sustainability, and productivity benefits of AI.
Data deal – Laconic, a Chicago-headquartered carbon markets financial data firm, announced a partnership Tuesday with monitoring, reporting, and verification (MRV) company Adatos for users of its platform to access validations and assessments of nature-based removal and reduction activities. Adatos’s MRV data is globally applicable for all forests, mangroves, peatlands, and large-scale monoculture, and will be available on Laconic’s SADAR natural capital markets platform. Laconic recently hired Alistair Mullen as its Senior Vice President of Carbon Markets, and also announced a partnership with UK-based Emerge to provide live voluntary carbon market data to its SADAR users.
SHIPPING
Good work – GoodShipping, a division of FincoEnergies, has launched a platform designed to facilitate the management of carbon insetting for cargo owners and freight forwarders. Decarb Desk helps users calculate and track transportation emissions, ensuring each carbon inset reduction is backed by verified, traceable credits. Building on GoodShipping’s earlier customer portal, Decarb Desk enhances the transparency and control over Scope 3 emissions in the supply chain. The platform employs a digital book-and-claim framework, adhering to standards from leading industry organisations like the Smart Freight Centre. The aim is to provide a more efficient, auditable, and transparent way to handle carbon insetting processes, eventually expanding to include road transportation and integrating with existing customer systems through API. GoodShipping said this development aligns with its broader strategy to simplify decarbonisation technology for the global supply chain.
SCIENCE & TECH
First movers – Tech firms Microsoft and Google alongside steel producer Nucor are reviewing submissions to its Advanced Clean Energy request for information to accelerate the development of first-of-a-kind and early-commercial advanced clean electricity technologies. This could include advanced nuclear, next-generation geothermal, clean hydrogen, and long-duration energy storage. The companies will pilot a project delivery framework with selected applications that will include offtake agreements for technologies, bringing a clear customer voice to policymakers and other stakeholders, and development of new tariff structures in partnership with energy providers and utilities. As three of the world’s largest energy buyers, the approach aims to reduce risks for utilities and developers, ultimately helping to bring projects online by the early 2030s, the companies detailed. Selected projects to proceed to detailed diligence phase will be notified by late April, with Q1 2025 targeted for the first round of power purchase agreements.
A-Intelligent forests – AI marketplace Genesis AI has launched TrueForest, an AI tool designed to assist forest carbon offset project calculations, a media outlet reported Tuesday. The tool is aimed at supporting Indigenous communities in BC. The company expects the tool to make carbon project assessment more accessible and economical, adding to the firm’s suite of AI-driven forestry analytics and management tools. The marketplace has deployed over 35 AI digital tools across various sectors including asset management, customer service and advertising, according to the firm’s website. (TipRanks)
AND FINALLY…
No (fire) escape – California’s wildfire insurance crisis has become so fierce that even the state’s firehouses are poised to feel the heat – as they may not receive coverage, E&E reported Friday. At a state Senate Budget subcommittee hearing Thursday, Governor Gavin Newsom (D) defended the California Department of Forestry and Fire Protection’s request for $11 mln to replace a kitchen at Ishi Conservation Camp, which houses and trains inmate firefighters in the remote Sierra Nevada foothills of Tehama County. But Finance Department Analyst Victor Lopez told lawmakers that Cal Fire, which usually pays for building maintenance with bonds based on the value of its property, couldn’t support the Ishi project because it was unable to insure the facility to underwriters’ satisfaction. Another insurer, FAIR Plan, had the same issue. Multiple insurers have reduced their exposure in the Golden State in the face of rising climate disasters, particularly wildfires. California residents also face the possibility of being compelled to pay some $2 bln to bail out the FAIR Plan in case the state experiences a major wildfire, the insurer’s president admitted in March.
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