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TOP STORIES
Energy Transition Accelerator announces steps forward, US to introduce offset guidance soon
The Energy Transition Accelerator (ETA), a US-led jurisdictional carbon crediting programme, on Friday detailed its recent developments, while the top US climate envoy said that federal guidelines for the use of offsets will be published in the coming days.
Cote d’Ivoire asks Rabobank to suspend carbon credit activities in country amid numerous allegations
The government of Cote d’Ivoire has reportedly asked Dutch bank Rabobank to suspend its carbon credit origination activities in the Nawa region of the country, claiming that emissions reductions previously sold to buyers including Microsoft were state property and contracted to another party.
WEEKEND READS
FEATURE: Europe accused of hijacking int’l carbon markets with removal certification
With its certification for emissions removals, the EU is moving to lock out international carbon credits to meet its own climate targets, at the expense of developing countries that are in direst need of green finance, critics say.
FEATURE: G20, not COP29, key to meeting global climate finance needs
International climate finance flows will depend on movement within the G20, not the UN negotiations at COP29 this year, several sources told Carbon Pulse on the sidelines of the International Monetary Fund (IMF) and World Bank Spring Meetings, held this week in Washington DC.
VOLUNTARY
Social Carbon consults on upgrades to voluntary standard as it seeks to align with ICVCM
Social Carbon has opened a consultation on proposed updates to its standard for crediting voluntary projects, as well as the requirements for validation, monitoring, and verification, as it seeks to align with the Integrity Council for Voluntary Carbon Markets (ICVCM).
SBTi boss “regrets distress” caused by proposed change to carbon offset use policy
The CEO of the Science Based Targets initiative (SBTi) has reaffirmed the organisation’s dedication to robust science-based decarbonisation standards, saying he “deeply regrets the concern and distress” caused by a proposed change in its policy regarding offsets.
Developer, local council sign carbon trading deal to protect 250k hectares of forested land in Tanzania
A Tanzanian project developer has signed an agreement with a local district council to implement a forest conservation scheme covering 250,000 hectares across 14 villages.
German biochar firm enters US partnership to coin voluntary carbon credits from wastewater sludge
A German climate technology firm has entered a partnership in the US to create biochar carbon removals from wastewater sludge disposal.
INTERNATIONAL
India seeks exemption from UK’s CBAM -media
India is seeking an exemption from Britain’s planned carbon adjustment border tax (CBAM) as part of negotiations aiming to finalise a free trade deal with the UK, according to an exclusive in the Guardian newspaper.
Expert review of link between sovereign debt and climate launched at IMF Spring Meetings
An independent review of the link between sovereign debt and climate change is being launched by experts at the IMF and World Bank Spring Meetings on Saturday.
Guyana first small island state to report biennial climate action progress under Paris Agreement
Guyana is the first Small Island Developing State to report on its climate action pledge under the Paris Agreement, acting ahead of the Dec. 31, 2024 deadline, the UN’s climate change secretariat announced Friday.
ASIA PACIFIC
Australia’s Clean Energy Regulator writes to Safeguard entities over ACCU compliance concerns -source
The Clean Energy Regulator has written to entities covered under the Safeguard Mechanism raising concerns that they are not implementing strategies fast enough to meet their compliance obligations ahead of the February surrender deadline, a source has told Carbon Pulse.
CN Markets: CEA price hits all-time high again on regulatory optimism, but liquidity dwindles
China’s national carbon market saw allowance prices reach a fresh high again over the past week but with lower trading volumes, as observers expect tighter allocation of permits in the upcoming market plan.
Japanese, Indian firms sign deal on green ammonia collaboration
A major Japanese energy company has signed an initial agreement with India’s biggest renewable energy firm on ammonia supply, the second such deal in recent months for a fuel deemed by the Indian government as eligible for export under Article 6 of the Paris Agreement.
Korean water utility secures early carbon project deals in Central Asia
A state-owned water supplier in South Korea has secured partnerships with two Central Asian countries as it seeks to explore the potential of emissions reduction projects using renewable energy in the region.
New Zealand pledges climate finance for Southeast Asia, looks at Article 6 tie with the Philippines
New Zealand has committed NZ$41 million ($25 mln) in climate finance to Southeast Asia via the Asian Development Bank’s (ADB) Energy Transition Mechanism (ETM), it said Friday, while entering into early talks with the Philippines over potential cooperation on Article 6.
AMERICAS
RGGI emitters are sole buyers this week, while traders reduce exposure across North American carbon markets
Traders reduced exposure across North American carbon markets this week except for RGGI compliance entities, according to the latest data from the US Commodity Futures Trading Commissions (CFTC) released Friday.
Supplier sues CO2 pipeline developer for scrapping contract
A CO2 pipeline developer is being taken to court by one of its suppliers for terminating their agreement, amid increasing opposition from permitters and stakeholders that has delayed construction of a major US project.
AVIATION/SHIPPING
GenZero, VCMI partner to carve out role for technical innovation in “high integrity” carbon ecosystem
Temasek subsidiary GenZero has partnered with the Voluntary Carbon Markets Integrity Initiative (VCMI) to substantiate the use case for technical products such as Sustainable Aviation Fuel (SAF) certificates and understand their potential role in high integrity carbon market infrastructure.
EMEA
Euro Markets: EUAs drop 3.8% on the day and the week as markets unwind amid easing Middle East tension
European carbon prices recorded a 3.8% drop on Friday, which also represented the week-on-week decline, after prices had spent the week fluctuating in a relatively narrow €6.80 range, as markets sold off steadily after an overnight attack by Israel on Iranian facilities appeared not to have inflamed the already-tense atmosphere in the Middle East.
EU earmarking €28.5 mln for industrial carbon removal, CCUS projects under LIFE programme
The EU is allocating €28.5 million in investments towards small-scale industrial CO2 removal and CCUS projects as part of its LIFE programme, a bloc-wide initiative for funding environmental and climate actions.
BIODIVERSITY (FREE TO READ)
SBTN launches first science-based targets for seafood value chains
The Science Based Targets Network (SBTN) has launched a corporate pilot to develop the first scientific targets for seafood value chain impacts, ahead of the full roll out in mid-2025.
UK Peatland Code likely to stack biodiversity credits with carbon from 2025
Peatland could generate voluntary biodiversity credits for sale in combination with carbon credits in the UK next year under Peatland Code proposals launched this week.
International panel launches second consultation on biodiversity credits
The International Advisory Panel on Biodiversity Credits (IAPB) has launched its second consultation on the emerging biodiversity market, seeking to gather views on possible basic models.
Tech firms launch fund for projects aligned with global biodiversity targets
A fund for investing in projects that contribute to reaching global biodiversity targets has been launched by an environmental impact platform and a payments network.
Environmental consultancy releases metric to measure biodiversity in the Americas
A Copenhagen-headquartered environmental consultancy has released an open-access metric to measure the biodiversity value of sites in the Americas, seeking to better inform restoration projects as well as supporting corporate disclosures on nature-related impacts and dependencies.
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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
EMEA
Approaching peak – EU demand for LNG will likely peak this year as the bloc accelerates its renewable energy transition and as the energy crisis starts to ease, according to the EU’s energy watchdog. The gas demand reduction foreseen by 2030 “will be slightly over 200 billion cubic meters relative to 2019,” according to the Agency for the Cooperation of Energy Regulators, which is more than the EU’s annual Russian imports before the war. The bloc will be over-contracted for gas from 2027, but those supplies will be diverted elsewhere, said the report. The data reflects the fact that Europe’s energy crunch is start to ease, even as the continent becomes the world’s largest LNG importer. The EU aims to phase out all dependence on fossil fuels from Russia by 2027, though is still reliant on this supply due to long-term contracts signed prior to the war. (Bloomberg)
No vision – According to WWF, EU leaders showed no vision in response to the former Italian PM Enrico Letta’s single market report following the EU council. Though Letta’s report contained many positive elements, such as the need for additional investments and a circular economy, EU heads of states only focused on short-term priorities and designed to favour those who lobby them the hardest, WWF said.
ASIA PACIFIC
New appointment – The government of Japan has appointed Yoshinobu Tsutsui, chairman of Nippon Life Insurance, as the chairman of the GX Promotion Organisation to help the country achieve green transformation, the Ministry of Economy, Trade and Industry (METI) announced Friday. In order to realise over 150 trillion yen ($970 bln) in GX investments over the next 10 years, the newly established agency will provide financial support such as debt guarantees, operate an emissions trading scheme, and collect fossil fuel levies, METI said.
Helping out – Sweden is working on plans to help India in its energy transition so that the South Asian nation can achieve net zero emissions target by 2070, Swedish officials have told newspaper Mint. Sweden will help India by collaborating in the heavy industries sector, mainly steel and cement, the newspaper reported. Indian manufacturing firms are expected to be hit severely by EU’s CBAM and Sweden will try to soften the blow by helping the country’s industries in the energy transition.
Mountain summit – Nepal is preparing to host the International Expert Dialogue on Mountain, People and Climate Change starting May 22, with the two day event aiming to foster consensus among mountain nations, stakeholders, and partners on shared challenges, particularly focusing on mountain-based solutions to address climate change. The convening is intended to focus on the important role played by mountain regions in providing freshwater, clean air, and acting as biodiversity hotspots.
AMERICAS
Rule incoming – The US EPA will soon issue a new rule for how oil and gas facilities assess and report climate pollution, and it could put more operators on the hook to pay methane fees. The White House finished reviewing the final oil and gas GHG emissions reporting rule on Wednesday. That usually means the release of a rule is imminent, but in this case the announcement might be delayed until after EPA debuts a set of high-profile power sector rules next Thursday. Congress directed the EPA to revise its reporting guidelines for oil and gas facilities when it passed the 2022 climate law known as the Inflation Reduction Act, which also authorised new fees on excessive methane leakage. Numerous studies have shown that the methane accounting methodologies currently required by EPA underestimate the sector’s leaked emissions. The EPA’s proposed rule last year set much higher default emissions values for equipment and adds new categories for reporting, potentially resulting in some oil and gas companies disclosing higher levels of methane emissions for the same operations than they had in the past. (E&E News)
Blending waiver – The US EPA issued an emergency temporary fuel waiver on Friday to allow E15 gasoline blended with 15% ethanol to be sold from terminals starting May 1 in approximately two-thirds of the country that switches to a blend of E10 during the summer months. E15 can already be sold year-round in parts of the country that have a Reformulated Gasoline programme. The action was taken to ensure adequate fuel supply through the summer driving season given the ongoing conflict overseas, the agency said in the press release. The waiver will last through May 20 – a 20-day statutory maximum. The EPA noted, however, that they would continue to monitor supply with industry and federal partners, expecting to extend the emergency fuel waivers until such time as the “extreme and unusual” fuel supply circumstances due to ongoing war in Ukraine and conflict in the Middle East, they said, were no longer present. However, a trader noted that the agency had done similar last year, allowing for E15 blending all through the year.
Alaska advances CCS bill – The Alaska House of Representatives on Wednesday approved House Bill 50 (HB 50), which would set rules for carbon capture and storage (CCS), reported Anchorage Daily News. HB 50 was originally promoted as a way to generate public revenue while also reducing emissions, but lawmakers have gradually stripped out the proposed minimum levels of revenue and argued that the bill was necessary for oil and gas work in the state. The bill was part of a carbon management package introduced by Governor Mike Dunleavy (R) in Jan. 2023. HB 50 now advances to the Senate, where members of the majority caucus have expressed high interest in the proposal.
IRA publicity issue – In a recent survey, 41% of US voters polled said they weren’t informed enough to say whether the Inflation Reduction Act (IRA) has helped fight climate change, while another 30% said it has not made much difference, reported The Hill. Furthermore, 16% said the IRA has helped do so, while 13% said it has actually hurt. The Biden administration publicly cites the IRA as one of its signature accomplishments.
Nuclear option – US-headquartered nuclear component supplier, BWX Technologies announced an investment of C$80 mln on Friday to expand their manufacturing plant in Cambridge, Ontario. This investment builds on BWXT’s existing operations in the Canadian province, that support Ontario’s nuclear stations at Darlington, Bruce, and Pickering townships. Nuclear power currently accounts for about 50% of Ontario’s electricity supply, providing baseload power with zero emissions since the 1960s. Construction for the BWXT Cambridge Expansion Project will begin in the third quarter of 2024 and is estimated to be completed in early 2026.
Paint-over pollution – Automaker Volkswagen Canada has commissioned three 5,600 sq. ft CO2 absorbing paint murals across the cities of Toronto and Edmonton, as part of its sustainability initiatives, the company said in a press release, towards decreasing its dealer network carbon footprint by 30% by 2030. The company launched this week the first of the two Toronto murals located at 144 Ossington Avenue, showcasing local artist Ronaldo. The second Toronto display at 1149 Queen St. W. and the Edmonton mural at 10025 106 St. NW are expected to be available for viewing on May 6. The firm has donated similar “pollution-eating” paint to Calgary’s BUMP festival, they noted. Volkswagen also said it had launched a “pollution-eating car cover” for their new line-up of all-electric ID.4s. Activated by daylight, the company claims the titanium-dioxide coating absorbs pollutants from the environment, which it said broke down into inert organic compounds like water and other basic elements. The auto brand has also offered Volkswagen owners a “zero-waste sustainable car detailing kit including carbon capture car soaps and wheel cleaner”. In 2021, the firm launched the “Carbon-Neutral Net” to build awareness about sustainability and carbon emissions created through online search engines and websites. The German car manufacturer was involved in an emissions scandal in 2015, charged by the US EPA for installing illegal software to their diesel vehicles to falsify emission levels.
No progress – A survey from a clean energy think-tank says Alberta has done little to implement its plan to reduce its GHG emissions. The Pembina Institute has examined the measures included in the province’s plan released one year ago. It says it found no evidence the government has begun the sort of public consultations required to move Alberta’s economy towards the goal of net zero emissions. Despite the plan’s promise to keep reducing Alberta’s methane emissions, the institute points out the United Conservative Party government opposes federal measures aimed at that goal. And although the plan promises to lower the emissions limit for the oilsands, the institute says it found no indication such a move is being considered. The report found two examples of progress – a grant programme for carbon capture and storage and an increased allotment of revenues from the government’s carbon levy toward emissions reduction. Pembina Director Simon Dyer says the government’s slow movement on climate change risks Alberta’s future by putting its economy out of step with where the world is going. (Canadian Press)
Green going – Vice President of Brazil’s Chamber of Deputies Veneziano Vital do Rego Segundo Neto says the Senate should consider prioritising the issues related to the country’s green agenda after advancing on a number of other controversial issues, reported Folha de Sao Paulo. Specifically, he cited the national ETS bill approved by the lower house in Dec. 2023 and a bill designed to expand the country’s biodiesel sector. The ETS bill has now stalled in the Senate on account of concerns by the Lula administration around the expanded role of the voluntary carbon market in the Chamber’s version. Executive agencies are working to address their concerns before putting the bill to a vote in the Senate, with President Lula targetting passage in the first half of this year.
VOLUNTARY
BP/Petrobras agreement – Oil giants BP and Petrobras signed a Memorandum of Understanding (MoU) Thursday that included, amongst other provisions, an agreement to explore and collaborate the issue of carbon credits. Petrobras entered the VCM in Sep. 2023, saying at the time that it intends to spend as much as $120 mln in the space by 2027.
INVESTMENT
AND FINALLY…
Rockstar removals – The world’s first large-scale concerts to fully remove their equivalent CO2 emissions have occurred during four dates at London’s O2 Arena where the rock band The 1975 played, according to claims by the iconic London venue as reported in Rolling Stone. Removal experts CUR8 and sustainability consultancy A Greener Future were brought in to procure the carbon removals, including from biochar and enhanced rock weathering. Some 545.9 tonnes of removals were purchased across the four shows to offset their carbon emissions, equating to 136.46 tonnes of residual carbon per show. That equates to the annual electricity usage of 395 average homes. The pilot is intended to show that it’s possible to run an arena-size live show that accounts for its environmental impact. The 1975 have been outspoken environmental champions in the past – encouraging fans to plant trees and creating a charity t-shirt in support of climate change organisation Music Declares Emergency. Frontman Matty Healy also previously described Greta Thunberg as “the most punk person” he has ever met.
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