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TOP STORY
ANALYSIS: Voluntary carbon actors eye narrative change but demand still lacking
Voluntary carbon attendees at an industry event held in Florence this week struck an optimistic note in light of imminent market developments that are expected to boost demand, but multiple sources highlighted a lack of tangible impact so far, with buyers still said to be holding back on offset investment due to reputational risk.
EMEA
ANALYSIS: Experts cautious on proposed EU methodologies to certify carbon removals
Experts expressed mixed views on the European Commission’s proposed methodologies to certify different types of carbon removal activities under the EU’s Carbon Removals Certification Framework (CRCF), with some observers welcoming bold elements of the proposals and others criticising them on structural or methodological grounds.
EU removals methodologies not likely to certify units before 2027, frustrating experts
Carbon removal experts expressed frustration this week at news that the EU’s carbon removal methodologies will not yield carbon removal units with the bloc’s stamp of approval until likely 2027.
European low-cost airlines see emissions soar to record in 2023 on €18/t avg carbon price -study
European low-cost airlines paid around €18/tonne on average to pump out more CO2 than ever last year, even though emissions for the continent’s aviation sector as a whole remain below 2019 peak levels, according to a study released Friday.
UK open to ETS linkage with EU, but complications mean it will take time
The UK remains interested in linking its emissions trading scheme with other markets, but needs to determine how this would work in practice to ensure that it makes sense for the market and businesses involved, a government official said on Thursday.
Supply chain issues threaten UK net zero, government report warns
UK supply renewables chains are ill-prepared to meet renewable deployment targets for net zero, a new report commissioned by the government has warned.
Euro Markets: EUAs post 2.2% gain but prices are flat for the week as gas-driven volatility dominates
EU carbon prices extended their volatile price action for a fourth day with a solid gain to stand almost unchanged for the week to date, after the market fluctuated in a near-€4 range following significant swings in natural gas prices as traders considered supply issues in the US Gulf.
AMERICAS
WCI Markets: CCAs fluctuate on low volumes, WCAs continue to creep higher
California Carbon Allowance (CCA) prices fluctuated throughout the week, ending with minimal gains as traders await next week’s workshop on potential programme amendments, while Washington Carbon Allowance (WCA) values crawled higher amidst limited activity in the under-fire scheme.
Apple employs suite of tools to reduce emissions, adopts offsets as “interim” solution
En route to carbon neutrality at the end of the decade, US tech giant Apple plans to offset 25% of emissions across its value chain with voluntary carbon credits, it said in a progress report released Thursday.
US DOE invests $8 mln in industrial decarbonisation
The US Department of Energy (DOE) on Thursday unveiled $8 million in funding for 14 projects that convert CO2 emissions from industrial processes into useful products.
Colorado cap-and-trade bill passes House committee
A bill introduced by the Colorado House of Representative lawmakers to legislate a cap-and-trade system in the state on Thursday passed a committee amid polarising stakeholder sentiments.
ASIA PACIFIC
PREVIEW: India heads to the polls as ruling party promises more of the same, lacks specifics on climate policies
India is one of the most vulnerable countries to global warming, but neither the political parties nor the voters have climate change issues high up on their agenda as the world’s largest democracy begins its elections on Apr. 19.
ANALYSIS: Australian landfill gas method rework consultation ‘imminent’ as ERAC assessment deemed litmus test for overhauled body
The Australian government is expected to ‘imminently’ release a discussion paper on the rework of its landfill gas methodology and likely finalise it by the end of the year, but market participants are still left guessing what will be done with one of the market’s biggest-yielding project types.
Australia’s Queensland legislates emissions reduction target of 75% by 2035
Australia’s state of Queensland on Thursday passed legislation to reduce the state’s emissions by 75% by 2035, as well as to achieve 80% renewable energy generation by the same date.
South Korea plans fund to support carbon projects, trade ITMOs -media
South Korea is planning to develop a fund to support carbon offset projects globally to generate Internationally Transferred Mitigation Outcomes (ITMOs) that the East Asian nation can use to meet its climate goals, Bloomberg reported Thursday.
Indonesian nickel mining could destroy 500,000 ha of forest -report
In Indonesia, an area the size of Singapore has already been deforested to supply the nation’s booming nickel industry, and eight times that amount of forest could be under threat, according to a report released Thursday.
UK platform, ASEAN group partner to propel carbon market growth
A UK-based market intelligence and carbon credit procurement platform has partnered with a Southeast Asian private sector alliance to support the growth of voluntary and compliance carbon markets in the region, it announced Thursday.
INTERNATIONAL
Article 6 torn between private sector and geopolitics ahead of ‘bridge’ COP29, UN advisor says
Negotiations on Article 6 of the Paris Agreement are expected to be influenced by the private sector and geopolitics, as parties prepare for a ‘bridge’ climate conference in Azerbaijan, a UN advisor said on Thursday at IETA’s annual European Climate Summit in Florence.
Australian pension fund tips $400 mln into Macquarie NBS, renewables fund
Superannuation fund UniSuper on Friday announced a $400 million investment in the Macquarie Green Energy and Climate Opportunities Fund (MGECO), which invests in renewable energy and nature-based solutions.
VOLUNTARY
First CCCI transition credit pilot project to see more clarity this year
The first Coal to Clean Credit Initiative (CCCI) pilot project could see more progress this year, according to the developers, who eye avoiding up to 19 million tonnes of CO2 emissions with the early phase-out of a Filipino coal plant.
Gold Standard approves CDR methodology for biomass fermentation
Gold Standard has approved its first geological storage methodology as it steps into the carbon removal (CDR) sector that is starting to shift from a niche market into the mainstream.
Off-grid solar company gets green light for large cookstove carbon projects in Africa
A project developer plans to distribute 600,000 energy-efficient clean cookstoves in Africa as part of a multi-million dollar grant to decarbonise the electrical grid in Uganda.
Drax firms up $600k offtake deal for BECCS credits in US
UK energy firm Drax Group has made another step in becoming a US leader in carbon removals through bioenergy with carbon capture and storage (BECCS) after firming up a reported $600,000 deal with an environmental consultancy.
BIODIVERSITY (FREE TO READ)
UK farming set for rockier outlook as impacts of Brexit start to bite
Farms in England are set to see substantial falls in business income due to dwindling commodity prices, sharper subsidy cuts following Brexit, and increased competition from cheaper imports, while uptake of natural capital payment alternatives is still lacklustre, industry experts said Thursday.
England government should invest more in sustainable farmer advice, experts say
The government of England should invest more in advising farmers on how they can deliver effective change in transitioning to more sustainable practices, experts said Thursday.
Brazil must drive G20 efforts on international standards for biodiversity disclosures, non-profit says
Brazil should lead G20 efforts in developing globally recognised standards for nature-related disclosures, non-profit CDP has said, as the country considers mandating compliance with target 15 of the Kunming-Montreal Global Biodiversity Framework (GBF).
Disclosure standard body urged to prioritise biodiversity, align with other frameworks
An international standard-setting body on disclosures has been urged by its staff to ramp up efforts in researching biodiversity, as companies are showing an increasing interest in improving assessments of nature-related risks and opportunities.
Biodiversity Pulse: Thursday April 18, 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
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
INTERNATIONAL
Spring into action – Governments of rich countries must pledge hundreds of billions more in overseas aid payments channelled through the World Bank in order to avert the worst impacts of the climate crisis, say civil society experts and economists. The World Bank’s annual spring meetings in Washington DC are expected to see fresh discussions around new aid pledges, with the World Bank, IMF, and other development banks under pressure to lead on the green transition. As much as $2.4 trillion a year is needed by 2030 to shift developing countries, excluding China to a low-carbon economy, economists say, with about $1.4 trillion of that expected to come through these countries’ investments and the remainder from publicly funded assistance from wealthy countries, plus private sector capital. Nothing less than a “quantum leap” on climate finance from the World Bank would be sufficient, said Simon Stiell, the UN’s top climate crisis official. (the Guardian)
EMEA
EU leaders want more competitiveness – The 27 leaders of the EU called for a new “competitiveness deal” to close the economic gap with its global rivals and reverse a worrying trend of industrial decline, following the two day EU council in Brussels. Charles Michel, president of the European Council, said the bloc needs more money to prevent Europe from becoming an industrial desert at the expense of the US, China, India and other emerging powers. The declaration of intentions will for now not be acted upon, but will be translated into tangible results after the upcoming elections. (Euronews)
Call for proposals – The EU’s LIFE Programme, an initiative for funding environmental and climate actions, is open for proposals from businesses, academic institutions, governments, NGOs and other organisations to submit ideas on nature conservation, environmental protection, climate change, or clean energy. Some €571 mln is available this year, for projects across a range of categories including nature and biodiversity (€155 mln), circular economy and quality of life (€65 mln), and climate change mitigation and adaptation (€61.98 mln). Further details and submission deadlines here.
Shipping liners appeal to EU – The World Shipping Council (WSC), the united voice of liner shipping, has called on the EU to design policy frameworks that facilitate the essential role of shipping in a globally connected economy. WSC says the EU has an important role to play in pushing for efficient global climate regulations at the International Maritime Organisation (IMO) by 2025. (Offshore energy)
ASIA PACIFIC
Partnerships – New Zealand and Thailand have agreed to upgrade their bilateral relationship to a Strategic Partnership by 2026 which will include cooperation on carbon markets, according to a joint statement released by the two nations. It follows NZ Prime Minister meeting his Thai counterpart, Srettha Thavisin in Bangkok this week, as part of a diplomatic and business mission in the region. The joint statement said the two leaders agreed to collaborate to reduce reliance on fossil fuels and combat climate change, and this collaboration may include joint projects on renewable energy technology development, and the use of carbon markets. The agreement is similar to a pledge signed between New Zealand and Singapore earlier this week.
Solar powering the Himalayas – The International Solar Alliance (ISA) has signed an agreement with the government of Bhutan to develop multiple projects in the country in order to ensure the energy security of the Himalayan nation, the Times of India reported. The alliance is also helping Bhutan to develop a national solar energy roadmap and is providing regulatory support for developing solar tariffs, standards, and guidelines to the electricity regulatory authority (ERA) of the country. The Himalayan Kingdom joined the alliance in 2022.
Work together – The Philippines and Singapore are planning to form a working group that will discuss possible cooperation on the carbon credit market, aiming to establish a Paris-aligned framework, according to the Philippine News Agency, which cited comments by visiting Singapore Foreign Minister Vivian Balakrishnan. Singapore is also looking to expand energy cooperation with the Southeast Asian country, Balakrishnan said, referring to a cross-border energy trading mechanism similar to the Singapore-Thailand-Malaysia-Lao PDR power integration project.
New contract – LY Corporation, one of Japan’s largest tech companies, has decided to purchase domestically issued J-credits derived from forests owned by Tajima Forest through a 10-year contract, in order to offset its Scope 1 and 2 CO2 emissions, it said in a statement. The tech firm plans to buy 1,500 credits from the forest management company every year, and the proceeds from the sale will be used for forest maintenance and reforestation.
Methanol pilot – Tokyo-based Mitsui E&S has completed the delivery of the internal condensation reactor (ICR) for a pilot facility to establish a highly efficient process for producing methanol from CO2 at the Ehime Works of Sumitomo Chemical, it announced Thursday. The pilot is being jointly developed by Sumitomo Chemical and Shimane University with the support of government-backed organisation NEDO. The partners aim to complete the demonstration of this new technology by 2028 and start licensing the technique to other companies in the 2030s.
Carbon capture partnership – State-owned Korea Research Institute of Chemical Technology (KRICT) has teamed up with energy firm GS Caltex to explore the potential of carbon capture and utilisation projects, they announced this week. Under the agreement signed Wednesday, the two organisations will work together to develop demonstration projects and commercialisation feasibility studies. Their goal is to lay the foundation to contribute to GHG reduction by 2030.
Greener pastures – New Zealand government, industry fund AgriZero is investing NZ$5 mln ($3mln) in BioLumic, an agriculture biotech company that uses ultraviolet light to develop a low emissions farm pasture with increased productivity gains, it announced. Funding from the partnership will allow BioLumic to apply its technology to ryegrass, the most common forage pasture on New Zealand farms, with a goal to increase fat content and subsequently reduce methane emissions from animals that consume it. AgriZero pointed to studies that found that a 1% increase in lipids content of feed will reduce methane emissions by around 5%.
Collaborations – Ammonia producer CF Industries and JERA have signed a joint development agreement to explore greenfield low-carbon ammonia developments at the former’s Blue Point Complex in Louisiana, they announced. The agreement will guide the two companies evaluation of a joint venture to build a 1.4 mln tonne capacity low-carbon ammonia plant. JERA is mulling a 48% stake in the project, as well as an agreement to procure more than 500,000 metric tonnes of low-carbon ammonia annually to meet demand in Japan. The two companies said they aim to reach a final investment decision on the proposed project within a year, with first production slated for 2028. Japanese companies are flocking to Louisiana as an investment and partnership destination for low carbon fuels and DAC projects, with Mitsubishi and multiple US companies announcing earlier this week they would work together on a DAC project in the state.
AMERICAS
Illinois CCS ideas – Dueling Democratic-led coalitions in Illinois are pushing competing ideas for how carbon capture and storage (CCS) should evolve and aid the state’s efforts to combat climate change, reported E&E. One group is led by state Representative Ann Williams, head of the House Energy and Environment Committee, and is aligned with Illinois environmental groups. This group supports the Safety Moratorium on Carbon Dioxide Pipelines Act (HB4835 and SB3441) and the Carbon Dioxide Transport and Storage Protections Act (HB5814 and SB3930). The former would temporarily pause CO2 pipeline projects across Illinois, while the latter would change how property is viewed by defining that landowners own the ground underneath the property to give them a larger say in CCS issues. On the other hand, business, labour, and agriculture groups comprise the other coalition, stressing the economic benefits available to the state. Another pair of bills, SB 3311 and HB 0559, provide a regulatory framework to CCS storage that proponents say contains some of the strongest property protection measures in the US.
House halt – The Republican-led Financial Services Committee of the US House of Representatives voted along party lines Wednesday to advance a series of bills intended to undercut efforts by federal financial regulators compelling companies to account for climate change, reported E&E News. While the measure stands no chance of being considered in the Democratic-controlled Senate, GOP lawmakers hope they’ll see support in the House, where moderate Democrats could side with Republicans in forcing President Joe Biden to veto efforts that align with key planks of his larger environmental agenda. On Mar. 6, the Securities and Exchange Commission (SEC) approved a series of climate-related financial disclosure rules for certain registered companies in a highly-anticipated decision, for which the agency later issued a stay while promising to defend the rules against legal challenges.
California’s climate compensation – California’s Senate Bill 1497 (SB 1497), dubbed the Polluters Pay Climate Cost Recovery Act of 2024, passed the Committee on Environmental Quality on a 5-2 vote Wednesday. If enacted, SB 1497 would direct the California Environmental Protection Agency (EPA) to establish a Polluters Pay Climate Cost Recovery Program to mandate compensation from fossil fuel producers for the damages caused by the sale of their products between 2000 and 2020. The bill would require California EPA to determine and publish a list of responsible parties within 90 days of the effective date of the Act. Entities penalised would include businesses in the state, or outside that had sufficient contact with the state, that emitted more than 1 bln tonnes of CO2e globally during the period. The money raised would be deposited in the Polluters Pay Climate Fund to support programmes that address climate adaptation and mitigation, as well as cover damage recovery.
Drilling, cancelled – The US Forest Service has cancelled a decade-old proposal to drill for oil and gas in a national forest in California, giving a win to environmental groups who opposed the project, E&E News reported Thursday. Oil firm Carbon California had planned to drill eight new wells and build a new pipeline in the Los Padres National Fores, but protests, company changes, and bureaucratic delays stalled the plan for 10 years before the agency finally marked the project ‘cancelled’ on its website earlier this month.
VOLUNTARY
ERW protocol – Isometric has certified a protocol for durable carbon removal through Enhanced Rock Weathering (EW), which details how the process can be monitored, reported on, and verified, so that buyers can purchase the related credits with confidence. Project developers so far signed up to the protocol are Eion, which is scaling ERW on farmland across America, and InPlanet, which focuses on tropical soils. While previous ERW crediting methods have relied a lot on desk-based modelling, Isometrics says its protocol sets out in detail the direct measurements of weathering and bicarbonate storage needed in order to issue quality credits. All Isometric protocols are developed in line with the Isometric Standard, a set of rules for carbon removal.
Algae CDR agreement – Project developer BlueGreen Water Technologies announced Thursday the sale of the first credits from its Utah Waterbodies Restoration Programme. The company sold 10 of the over 12,000 credits recently issued to the project to tech firm Zumo at for $100 each. BlueGreen said the issued credits represent the first-ever verified removal of CO2 via freshwater harmful algal bloom remediation. The remaining credits are now for sale, it added.
Buy one get one free – Climeco will match all tree planting purchases and select ocean-bound plastic reduction purchases dollar-for-dollar on its e-commerce platform for carbon credits through the month of April, in celebration of Earth Month, the company announced today. For every dollar spent, ClimeCo will plant two trees in reforestation projects in places like Haiti, Honduras, Indonesia, Kenya, Madagascar, Mozambique, Nepal, and the Philippines. It will also offer a dollar-for-dollar match on any funds directed to its ocean bound plastic recovery project in Vietnam, enabling purchasers to recover 30 kilograms of plastic for $24, it announced today.
SCIENCE AND TECH
Deadly heat – A deadly heatwave in West Africa and the Sahel was ”impossible” without human-induced climate change, scientists say, following temperatures exceeding 48C in Mali last month and one hospital linking hundreds of deaths to the extreme heat. Several countries in the Sahel region and across West Africa were hit by a strong heatwave that struck at the end of March and lasted into early April, with the heat most strongly felt in the southern regions of Mali and Burkina Faso. Scientists involved with the World Weather Attribution group suggest the high day time and night time temperatures would not have been possible without long-time fossil fuel use, coupled with other activities like deforestation. (BBC News)
AND FINALLY…
Wave goodbye – Rebuilding beaches after hurricanes is costing US taxpayers billions of dollars more than expected as the Army Corps of Engineers pumps mountains of sand onto storm-obliterated shorelines. Congress approved more than $770 mln since 2018 for emergency beach “nourishment” projects after five megastorms struck Florida, Georgia, and the Carolinas. Those costs shattered government expectations about the price of preventing beaches from disappearing through decades-old programmes that in many cases were created before the dangerous effects of climate change were fully understood. Four of those storms – Michael, Maria, Irma and Ian – were among the most powerful to make landfall in the US, raising questions about the rising costs of pumping, dumping and spreading sand onto beaches that are increasingly jeopardised by the effects of climbing temperatures. The emergency funding since 2018 was used largely to fortify Florida beaches. Those costs far surpassed the annual price of scheduled beach repairs nationwide, which amounts to roughly $150 mln over 19 states. (E&E News)
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