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TOP STORY
Indonesia’s Rimba Raya REDD+ project plunged into controversy after licence revoked by government
The giant Rimba Raya Biodiversity Project in Indonesia has been plunged into controversy after the local concession holder saw its business licence revoked by the government for violating carbon trading regulations, with the project’s owner failing to be notified about it.
AMERICAS
US EPA finalises pollution limits for fossil-fuel power plants, important role for CCS
The US Environmental Protection Agency (EPA) on Thursday finalised a suite of standards for new and existing fossil-fuel power plants to reduce 90% of their emissions, which also envision an important role for carbon capture and storage (CCS).
Supporters rush to defend US EPA clean car standards as it faces lawsuit from 25 states
Dozens of environmental advocacy groups and over 20 state attorneys general separately filed motions this week to intervene in a lawsuit filed against the US Environmental Protection Agency (EPA)’s vehicle emissions standards.
Recently announced federal tax incentives for biofuels’ feedstocks set to fuel industry decarbonisation
Federal incentives to lower carbon intensity (CI) in feedstocks, coupled with advancements in carbon removal and renewable natural gas, could propel the biofuels industry towards net zero in the US, industry members told a webinar Thursday.
WCI Markets: CCA volatility picks up as ARB workshop disappoints, WCAs lose momentum
California Carbon Allowance (CCA) prices traded lower through a volatile week as a highly anticipated rulemaking workshop failed to offer clarity on proposed changes to the cap-and-trade programme, while Washington Carbon Allowance (WCA) values declined amidst ongoing muted activity.
Canadian carbon project financier inks $5.6 mln offset royalty deal for US IFM portfolio
A Canada-based carbon project financier has agreed to pay $5.6 mln to acquire several gross revenue royalties on a portfolio of improved forest management (IFM) offset projects in the southeastern US.
Veteran carbon, energy sales trader moves on from Canadian bank after 15 years
A veteran carbon and energy sales trader has left one of Canada’s big banks after more than 15 years of service, Carbon Pulse has learned.
INTERNATIONAL
Major global asset managers raise $1.4 bln for inaugural decarbonisation fund
Two of the world’s largest investment firms have raised $1.4 billion for their inaugural late-stage venture capital and growth private equity investment fund that is targeting companies accelerating the low-carbon transition.
CCUS industry struggling to develop pipeline projects, says IEA
The pipeline of global carbon capture, utilisation, and storage (CCUS) initiatives is growing rapidly, but the nascent industry is struggling to fully develop these projects, a representative from the International Energy Agency (IEA) said on Thursday.
VOLUNTARY
INTERVIEW: Strong social return on investment boosts REDD project in Tanzania
A REDD developer in Tanzania is seeking to boost the selling power of its avoided deforestation projects by assessing the social impact of investment.
Public prefers nature-based to engineered carbon removals, study finds
Carbon removals based on nature-based solutions are generally preferred to engineered approaches amongst the general public in 22 countries, according to a study published on Wednesday.
Saudi Arabia’s carbon company to use Xpansiv technology for new carbon credit exchange
The Saudi Arabian company set up to drive voluntary carbon market growth has selected Xpansiv, the owner of the CBL marketplace, to provide the technology infrastructure for its carbon credit exchange.
BRIEFING: Integrity initiatives in VCM will help to narrow oversupply, boosting prices, analysis shows
Drives for greater integrity in the voluntary carbon market, such as classification of high-quality projects by rating agencies, will help to instil greater confidence in the market, bolstering demand and reducing oversupply so that prices could exceed $230 per tonne in the 2040s, according to analyst research presented Thursday.
British forest carbon data startup secures $12 mln in Series A funding
A British forest carbon startup has raised $12 million in Series A funding, just seven months after it announced funding of $2.2 mln at pre-seed level.
Nature-based offset trading platform raises €5.3 mln to strengthen operations
A nature-based trading startup announced on Thursday that it has secured nearly €5.3 million ($5.7 mln) in seed funding to advance its operations and introduce additional offset projects to its platform.
Canadian CCS firm launches partnership to explore CO2 mineral storage
A Canadian CCS firm and an Iceland-based CO2 mineral storage operator on Thursday announced a partnership to explore storage potential in Quebec.
EMEA
Clean heat rollout should take priority in European Commission’s next term -report
Clean heating should become a political priority for the next European legislative cycle, starting work next autumn, according to a report published on Thursday.
EU Parliament gives blessing to ETS-funded Net-Zero Industry Act
The European Parliament gave its blessing on Thursday to plans aimed at producing 40% of the bloc’s annual needs for net-zero technologies domestically by 2030, thanks to funds partially coming from emissions trading revenues.
Drax refinances as it waits on government subsidies for BECCS plant
UK energy company Drax Group has completed a major refinancing plan to extend operations beyond 2027 as it waits on the government to decide on extra subsidies to retrofit its biomass plant with carbon capture technology, it announced Thursday.
Euro Markets: EUA prices jump in afternoon gas-driven surge on reports of European LNG transit ban
Trading in European carbon allowances sparked into life in the afternoon as EUA and gas prices spiked on reports that the EU may propose a ban on transshipment of Russian LNG, after the morning has seen prices move in a relatively narrow range on lower than normal volume.
ASIA PACIFIC
Indonesia looks to incorporate blue carbon in second NDC, ministry official says
Indonesia has begun preparing its second Nationally Determined Contribution (NDC) to submit to UNFCCC, the government announced in a press conference this week, adding that it would seek to incorporate the marine sector, with a focus on managing coastal and marine ecosystems.
Startup looking to invest $150 mln in carbon offsetting projects in India, Sri Lanka
A Chennai-based developer is planning to invest $150 million in several carbon offset projects in India and Sri Lanka within the next 12-18 months, it announced at a conference this week.
Singaporean tech firm teams up with Japanese biofuel developer on sorghum carbon projects
A Singapore-based tech company has partnered with a Japanese biofuel developer to create agriculture-based carbon credits from sorghum production.
BIODIVERSITY (FREE TO READ)
Only five local authorities in England prepared for biodiversity net gain agreements -law firm
Just five local authorities in England out of the over 300 assessed are sufficiently prepared to enable the creation of conservation agreements for developers to meet biodiversity net gain (BNG) requirements, with delays likely, a law firm has said.
NA100 launches benchmark with 50 metrics on corporate nature progress
A set of 50 metrics for investors to measure corporate progress on biodiversity action has been released by Nature Action 100 (NA100) in its benchmark.
Biodiversity Pulse: Thursday April 25, 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
Carbon Forward Turkiye – May 9-10, Izmir: With the imminent launch of the pilot ETS in Q4 2024 and a burgeoning voluntary carbon market in the country, this inaugural event will give attendees an understanding of the significant impact these schemes, as well as the EU’s CBAM, will have on your business. Carbon Forward Turkiye also offers a chance to position and network with peers, policymakers, corporates, trade bodies, and analysts. 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. We are allocating a limited number of free passes to attendees representing medium- and large-sized companies that buy and retire voluntary carbon credits. If your firm is an end-user of carbon offsets and is not a major energy producer or supplier, contact us to apply for a free pass (1 per company). Otherwise, 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 LNG supply glut – The Institute for Energy Economics and Financial Analysis (IEEFA) published its Global LNG Outlook on Thursday, projecting a “tidal wave” of new LNG supply to flood the market in the coming years that “will likely thrust markets into an extended period of oversupply”. As major importing regions – Japan, South Korea, and Europe – aim to reduce LNG demand through 2030, suppliers and traders will increasingly depend on growth in emerging markets, which is not guaranteed, even in an oversupplied market, the report said. In Europe, the EU Agency for the Cooperation of Energy Regulators (ACER) recently predicted that demand for LNG in Europe would peak in 2024, adding to downward pressure on carbon prices in the short term. Correlation between carbon and gas prices remains high and is expected to continue, according to Veyt, a carbon market intelligence and analytics company.
Batteries to be included – The International Energy Agency (IEA) on Thursday released a special report on batteries, highlighting their critical role in meeting global climate targets. In less than 15 years, battery costs have fallen by more than 90%, the IEA said in its first comprehensive analysis of the entire battery ecosystem. Originally limited to consumer electronics, the energy sector today accounts for over 90% of overall battery demand, the report found. “In 2023 alone, battery deployment in the power sector increased by more than 130% year-on-year, adding a total of 42 gigawatts (GW) to electricity systems around the world,” the report said. In transport, batteries have enabled electric car sales to surge from 3 mln in 2020 to almost 14 mln last year, with further strong growth expected in the coming years. Looking forward, the IEA says battery deployment needs to increase sixfold by 2030 worldwide to meet climate goals and allow greater shares of renewables in the power system.
EMEA
North Sea buy-out – Ithaca Energy has agreed to acquire almost all of Eni’s UK oil and gas fields in a deal worth about £750 mln that will turn the London-listed company into one of the North Sea’s largest producers, the FT reports. Ithaca expects the transaction to boost its production to 150,000 barrels of oil equivalent per day by the early 2030s, more than double its output in 2023. Eni will receive a 38% stake in the enlarged Ithaca group, worth about £754 mln based on its closing share price of 118.8p on Tuesday, with the deal expected to be completed in the third quarter, subject to regulatory approvals. The deal excludes Eni’s interests in the Irish Sea or UK projects to capture and store CO2.
Sanctions on Russian LNG – The European Commission is expected to put forward proposals in the coming days to restrict imports of Liquefied Natural Gas (LNG) from Russia as part of its next round of sanctions imposed on Moscow for its military aggression in Ukraine. “The Commission is in the final stages of ironing out its proposal and is engaged in informal talks with member states this week,” Reuters reports. Rystad Energy, a research and intelligence firm, said Europe became the top destination for Russian LNG exports in 2022, surpassing Asia. The EU Agency for the Cooperation of Energy Regulators (ACER) recently published a report predicting that demand for LNG in Europe would peak in 2024 thanks to the bloc’s efforts to reduce demand following Russia’s invasion of Ukraine.
Macron’s green vision for Europe – French President Emmanuel Macron delivered a speech on Thursday at the Sorbonne University in Paris where he developed his vision for Europe, including on the green transition. “A first thing that seems obsolete to me: we cannot have a monetary policy whose sole objective is inflation, moreover in an economic environment where decarbonisation is a structural factor of increasing prices,” Macron said. According to the French President, a decarbonisation goal must be integrated in the objectives of the European Central Bank (ECB), “or at least a climate objective for our economies. It’s absolutely essential”. Macron also called for a “reindustrialisation” of Europe around the green and digital economy as part of a new “Prosperity Pact”, a move that was welcomed by campaigners as a wake-up call. “Europe can die without a robust European industrial strategy backed by massive public investments,” said Neil Makaroff, director at Strategic Perspectives, a think tank. “If the EU wants to remain on the map of world powerhouses, it needs to turn the European Green Deal into a green reindustrialisation plan in the next five years,” Makaroff said.
ASIA PACIFIC
Unexpected – Tasmania and Victoria are the two unlikely Australian states that are leading the country’s growth in rooftop solar, according to quarterly data from the Australian Energy Market Operator (AEMO), Renew Economy reports. According to AEMO’s latest Quarterly Energy Dynamics, the biggest growth in output came from the two southern most states, with Tasmania showing growth of 29% and Victoria 20%. The average output of distributed PV reached record highs in Victoria (787 MW), South Australia (445 MW), and Tasmania (58 MW). Rooftop PV accounted for 13% of total generation in the National Electricity Market in the quarter, just short of brown coal, and ahead of large-scale wind (11.8%) and large-scale solar (8.6%).
New methodology – Korea Gas Corporation (KOGAS) has obtained approval from the environment ministry for a methodology that can reduce emissions through the use of LNG cold energy, according to a statement. Around 700 tonnes of GHG will be reduced every year in a logistics project at one of the company’s manufacturing bases, KOGAS said. The methodology has been made public on South Korea’s offset registration system for interested companies to use.
Ammonia partnership – Japan’s Marubeni Corporation has started a joint study for the establishment of an ammonia supply chain in Hokkaido’s Tomakomai area through collaboration with several domestic companies, it announced Wednesday. The alliance includes Hokkaido Electric Power, Hokkaido Mitsui Chemicals, IHI Corporation, Mitsui, and Tomakomai Futo. The companies aim to build facilities for receiving, storing, and supplying ammonia, as well as conduct surveys for the expansion of ammonia use throughout Northern Japan.
Green bond potential – Nearly one in five municipal bonds in China could pursue green bond certification, reflecting a significant gap in leveraging finance resources to make local infrastructure more climate-resilient, according to an analysis by Greenpeace. While 19% of Chinese municipal bonds have medium to high potential to pursue green bond certification with a market size of more than 800 billion yuan ($110 bln), according to the non-profit, green municipal bonds at the moment only account for 1% of the country’s total green bond market.
AMERICAS
Federal building fossil fuel ban – The US Department of Energy (DOE) announced Thursday that it had finalised rules for requiring federal agencies to phase out fossil fuel usage in new federal building construction or major renovation by achieving a 90% reduction in fossil fuel use for projects started between fiscal years 2025 and 2029. Complete elimination of the use of fossil fuels in such projects should then begin in 2030. DOE said it estimates that over the next 30 years the new rule would reduce carbon emissions from federal buildings by 2 Mt and methane emissions by 16,000 tonnes. Earlier this month, the agency unveiled what it referred to the first blueprint for decarbonising the national building sector.
VOLUNTARY
Canadian CDR – Meadow Lake Tribal Council (MLTC), an alliance of nine First Nations in Saskatchewan, and Calgary-based project developer Carbon Alpha announced plans to develop the North Star Project, a carbon removal project near Meadow Lake, Saskatchewan. The project adds upon the MLTC’s existing bioenergy centre, which generates power using waste biomass, by adding CCS. It is expected to reach a final investment decision in mid-2025, start-up in mid-2027, and generate 70,000 credits annually once operational.
INVESTMENT
AI acquisition – One Click LCA, developer of lifecycle software for the construction and manufacturing sectors, has acquired Buildrz, a generative AI software for real estate opportunity analysis and feasibility studies. Together, the companies plan to extend their offering and bring integrated feasibility studies, cost analysis, and carbon analysis powered by a generative AI to their users. One Click LCA also recently launched a biodiversity net gain tool to help building developers in England address the biodiversity impacts of their projects and comply with new BNG legislation. This complements tools offered by One Click LCA to help developers conduct lifecycle assessments and reduce the embodied carbon of their developments.
AND FINALLY…
Going swimmingly – Protestors on a beach in Cornwall organised a ‘swim for sea’ protest against a proposed carbon sequestration trial by Canadian carbon removal firm Planetary Technologies and British private utility South West Water on Sunday. The firms look to drop tonnes of magnesium hydroxide in St. Ives Bay, CornwallLive reported, as protestors gathered signage distributed across working boats in the bay, as well as a mass swim against the experiment. Magnesium hydroxide is a compound used to enhance ocean alkalinity, which allows the ocean to absorb more CO2 from the atmosphere.
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