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TOP STORY
Durable carbon removal sales decline for third consecutive quarter
Durable carbon removals (CDR) saw their sales fall for the fourth consecutive quarter in Q1, according to a report.
EMEA
POLL: Analysts maintain bearish near-term UKA forecasts as fundamentals remain weak
Analysts have kept their UKA price forecasts at well below £50 for the next two years, citing weak fundamentals and ongoing policy uncertainty that will keep the market trading at a substantial discount to the EU ETS for most of the decade.
EU to take action against 20 airlines on greenwashing concerns
The European Commission, together with its 27 member states’ consumer authorities, has initiated action against 20 airlines to look at potential greenwashing practices, including the use of voluntary carbon credits, the executive announced on Tuesday.
INTERVIEW: UK waste-to-energy operator builds case as carbon removals business
The UK’s second-largest operator of waste-to-energy facilities is eying opportunities as a removals provider as it looks to roll out carbon capture across its portfolio and it receives an increasing proportion of biogenic waste.
EU’s over-subscribed hydrogen bank auction awards €720 mln to seven projects
The EU ETS-funded European Hydrogen bank has awarded nearly €720 million to seven renewable hydrogen projects, following its first competitive bidding process, the European Commission announced on Tuesday.
Euro Markets: EUAs unwind two days of losses as sellers retreat and natural gas prices jump
European carbon allowance prices rose steadily on Tuesday, wiping out the last two days of losses and surging by more than €1 in the final hour, as the selling activity that dominated Monday’s session was largely absent and gas prices rallied as the new benchmark TTF contract month began.
AMERICAS
High taxpayer cost, minimal industrial participation plague Canada’s C$8 bln decarbonisation fund -report
Ineffective management and incomplete data collection in Canada’s Net Zero Accelerator Initiative cost taxpayers upwards of C$523 ($380) per tonne of emissions reductions, while only two of the country’s large emitters have committed to the programme, according to the Office of the Auditor General.
LCFS net credit surplus rises to new records in Q4
California Low Carbon Fuel Standard’s (LCFS) cumulative surplus bank once again soared to new heights as net credits for the last quarter of 2023 rose to record levels, according to state data published Tuesday.
US federal court denies petition from green groups against California Diablo Canyon nuclear power plant’s license renewal exemption
A panel of judges from a US federal court denied a petition on Monday from a network of green groups against the US Nuclear Regulatory Commission’s (NRC) decision to grant an exemption to review California Diablo Canyon’s federal license renewal.
ASIA PACIFIC
Taiwan releases draft regulations on carbon levy collection, proposes preferential rates for emitters with voluntary targets
Taiwan’s environment ministry has released three draft sub-laws to underpin the island’s upcoming carbon levy scheme, estimating the amount emitters have to pay based on their carbon leakage risk and voluntary plans.
Southeast Asia registries partner for transparency, expansion, and Article 6 work
A recently formed carbon offsets standard and registry based in Singapore has partnered with a larger international partner to enhance the credibility and transparency of its platform.
Japanese trio launches impact finance product to meet decarbonisation need
A major trading house in Japan has teamed up with two domestic partners to launch an impact finance loan product to meet the decarbonisation needs of Japanese companies.
Carbon storage in Indian Ocean, Bay of Bengal can help India achieve climate goals -research
The Indian Ocean and the Bay of Bengal can potentially act as carbon reservoirs, storing huge amounts of CO2 that will help to decarbonise industrial clusters and can aid India to achieve its net zero targets, researchers have found.
Clean Energy Regulator’s oversight of ACCU Scheme “largely effective”, audit finds
The Australian National Audit Office (ANAO) has found the Clean Energy Regulator’s (CER) supervision of the country’s carbon market to be “largely effective”, but noted opportunities to address weaknesses in its information systems used to administer the scheme.
INTERNATIONAL
G7 confirms commitment to end coal power by 2035, amid steps to help shift away from fossil fuels
G7 ministers confirmed their commitment to phase out unabated coal power generation by 2035, in a joint statement on Tuesday setting out how they intend to support and lead the global agreement to transition away from fossil fuels and sale up clean energy.
US releases handbook to guide emerging economies in CCUS development, implementation
The US Department of Commerce released Tuesday a handbook intended to guide emerging economies in developing and implementing frameworks to catalyse investment into carbon capture, utilisation, and storage (CCUS) projects worldwide.
VOLUNTARY
Multiple Indonesian projects move step closer to issuance under Bangkok-based voluntary carbon registry
A total of 10 carbon offsetting projects have now cleared the preliminary assessment of a Bangkok-based voluntary carbon registry, and are poised to collectively generate more than 4 million carbon credits annually.
African Union to develop ‘Gold Standard’ for carbon offsets
The African Union Development Agency is looking for a consultancy service to develop an optimum standard for voluntary carbon offsets in Africa, to be labelled the ‘African Gold Standard’.
Major carbon removals buyer calls for reconciliation between corporate claims and national goals
A major carbon dioxide removals (CDR) buyer has outlined how private sector CDR claims can coexist with national emissions accounting, as the firm continues its efforts to scale the nascent market.
Net losses skyrocket for Canadian carbon consultancy from expanded offset investments
A British Columbia-based carbon consultancy nearly quadrupled its net loss in fiscal year 2023 due to increased expenses related to expanding its offset portfolio.
Mexican community stakeholders in voluntary carbon market accuse regulators of overreach
Over two dozen local Mexican communities involved in the forestry voluntary carbon market (VCM) sent a letter Wednesday decrying a government proposal that would regulate VCM activities in the latest episode of a regulatory saga begun early this year.
Partnership to provide best practices guidance, advance voluntary carbon market in Yucatan
The Voluntary Carbon Market Integrity Initiative (VCMI), in collaboration with the Yucatan government and global advisory firm Climate Focus, has announced a new partnership to establish best practice guidelines for voluntary carbon market (VCM) projects in the Mexican state.
Danish regenerative farming specialist teams up with Ukrainian bank on soil carbon finance model
A Danish tech startup specialising in regenerative agriculture finance and technology has teamed up with a bank in Ukraine to further tap the war torn country’s vast farming market for its soil carbon credit programmes.
AVIATION
UK aviation needs more incentives to cut emissions, experts say
UK aviation has a number of potential routes for decarbonising — from jet fuels to operational changes — but stronger policy is needed to incentivise and accelerate the shift in an industry where growing demand will otherwise push emissions upwards, industry experts said during a webinar on Tuesday.
BRIEFING: UK regional airports take first steps to develop hydrogen infrastructure
Regional airports in the UK are taking steps to develop the infrastructure behind hydrogen-powered flight, as they seek to support the decarbonisation pathway best suited to their short-haul customer base, participants heard on a webinar on Tuesday.
Scandinavian industrial secures first China SAF project
A Denmark-headquartered industrial company has secured its first sustainable aviation fuel (SAF) project in China as it aims to address the fast-growing global demand for cleaner fuels.
SHIPPING
INTERVIEW: New maritime pooling mechanism aims to dilute and monetise emissions intensity of EU ships
A Finnish startup is offering a pooling service to group high- and low-emissions intensity ships and facilitate their compliance with the EU’s incoming FuelEU Maritime rules.
BIODIVERSITY (FREE TO READ)
Fourth round of UN plastic talks closes amid disappointment due to insufficient progress
The latest round of negotiations on the UN plastic treaty wrapped up on Monday with shy steps forward on the draft text, due to be finalised by the end of the year, though observers levelled criticism over the lack of progress on production cuts and funding mechanisms.
BRIEFING: Investigation into Australian environmental offsets finds weak legal protections, regulators caving to developers
An investigation into Australia’s federal environmental offset scheme has found a ‘set and forget’ regulatory approach has led to areas earmarked for conservation being impacted or developed without consequence.
Major investors to vote for PepsiCo biodiversity risk shareholder proposal
Institutional investors including the Norwegian sovereign wealth fund and Rothschild & Co are asking PepsiCo to report on its dependencies on biodiversity in a bid to quantify the financial risks related to nature loss.
Florida to allocate $1.5 bln to biodiversity restoration, water quality improvement
The US state of Florida has announced a $1.5-billion commitment to restore biodiversity and improve water quality, including what it claims to be the largest single-year investment ever made to protect the Everglade wetlands.
Biodiversity Pulse: Tuesday April 30, 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
Damage control – The board of the Loss and Damage Fund, agreed at COP27 in 2022, met Tuesday in Abu Dhabi for the first time. For the first meeting, civil society actors have urged a focus on human rights, public consultation, transparency and reporting, grievance mechanisms and safeguards, direct access for affected communities, debt-neutral and complementary finance to other humanitarian initiatives, and room for innovative sources of finance based on the ‘polluter pays’ principle. After contentious deliberations at COP28 in 2023, countries decided that the World Bank would host the Fund for an interim period of four years. The Fund emerges from a loss and damage mandate in Article 8 of the Paris Agreement.
EMEA
Infrastructure call – A new call for proposals for key cross-border EU energy infrastructure projects worth up to €850 mln from the EU budget is being launched by the Commission today, with new project categories such as offshore electricity grids and hydrogen projects eligible for support for the first time. The call addresses funding proposals for studies and construction works and will be open until Oct. 22, 2024. Results will be known early next year.
Target backing – Germany’s foreign ministry has thrown its weight behind the European Commission’s proposal for a 90% emissions reduction by 2040, though the government cabinet has yet to agree its position. The EU is aiming to make Europe the first climate neutral continent by 2050 and has agreed to reduce GHG emissions by 55% by 2030 compared to 1990 levels as a stepping stone. Its eyes are now set on determining an intermediary target for 2040, with EU institutions set to make a final decision next year, well into the new term after the 2024 EU elections. (Clean Energy Wire)
New Czech nuke – The European Commission has approved a Czech support measure for the construction and operation of a new nuclear power plant in Dukovany in Czechia. The plant will have a capacity of 1,200 MW and is expected to be commissioned in 2036 for trial operations, and will commence in 2038. The plant will have an operating lifetime of 60 years and is planned to be decommissioned in 2096. The beneficiary of the measure is Elektrarna Dukovany II, a subsidiary of the CEZ group. Czechia will grant direct price support in the form of a power purchasing contract, which will ensure revenues for the nuclear power plant for 40 years. The company will also receive a subsidised state loan to cover the majority of construction costs.
Russian profits – Russia’s Lukoil is on track to make $7 bln in profits over the coming decade from a gas field in Azerbaijan that supplies the EU, according to Rystad Energy data analysed by Global Witness. Operated by BP with Lukoil owning almost a 20% share, the Shah Deniz field is one of the world’s largest gas-condensate projects, and currently the only one in Azerbaijan that exports to the EU. In 2022, European Commission President Ursula von der Leyen signed a deal with Azerbaijan to double gas imports from the country, in a bid to curb EU reliance on Russian gas. Yet, Lukoil was Azerbaijan’s third-largest gas producer when the EU deal was signed – accounting for 15% of the country’s output according to Rystad Energy – and is set to remain a significant player well past the EU’s 2027 deadline for quitting Russian gas. The company is not currently subject to EU sanctions, despite having business operations across the bloc while at the same time being a major contributor to Russia’s state revenues.
Promoting circularity – Copenhagen-based environmental services firm Klimate.co announced Circular Carbon as its new supplier, on social media platform LinkedIn on Tuesday. Founded in 2018, Hamburg-headquartered Circular Carbon produces biochar from organic residues. The project utilises biomass energy systems and, therefore, circular economy to produce biochar from organic waste that would otherwise be unused, the LinkedIn post stated. The project also supports overall soil health as applied biochar can help restore the natural balance in agricultural soils, it said.
ASIA PACIFIC
Life extension – The New South Wales is expected to announce a deal with Origin Energy to extend the operations of Eraring coal-fired power station for as long as four more years after its scheduled closure date in 2025, the Guardian reports. The 2.8 GW power station is the largest of its kind in Australia, and the decision to keep it open would involve taxpayers paying subsidies to Origin to extend the plant’s life for two years, with the option to run for two more, according to several people who have been briefed on the plans. The government has been in talks with Origin for some time over the plan, over fears that retiring the power station next year would lead to energy security and reliability issues. The cost of the subsidies are due to be discussed by the Minns government’s expenditure review committee as soon as this Friday.
Carbon-eating concrete – A research team at the government-funded Korea Institute of Civil Engineering and Building Technology (KICT) has successfully produced the country’s first CO2-eating concrete, it said in a statement released earlier this month. The team used ‘CO2 nanobubble water’ and industrial by-products to manufacture the special concrete, which has a capacity of storing 1.0-1.8 kg of CO2 when 2.3 tonnes of concrete are produced per ㎥. The technology is expected to help reduce more than 500,000 tonnes of CO2 per year in the domestic ready-mix concrete market, the statement said. At the same time, Seoul-based construction company GPC is exploring the potential of a technique featuring the injection of liquid CO2 into concrete products, and has signed a contract with Canadian carbon removal tech CarbonCure.
UK-Morocco link up – The planned renewable power link between the UK and Morocco has received a funding boost, with GE Vernova investing $10.2 mln into Xlinks First, the UK company planning to build it, Bloomberg reported. The project involves building a 4,000 km undersea cable – the world’s longest – and a power plant consisting of wind turbines, solar panels, and batteries in Morocco. Xlinks First has now raised $100 mln, a step towards the £24 bln ($30.1 bln) it estimates is needed to complete the project. The plant is expected to deliver 3.6 GW of power to the UK.
Friendly offer – US has offered India to import ethanol and feedstock from the US to fulfil its ethanol blending target by 2025 just days after India’s decision to limit the use of sugar for the production of ethanol, the Economic Times reported. India aims to introduce 20% ethanol-blended petrol by 2025. The South Asian nation is encouraging the use of maize as an alternative to sugar to enhance ethanol production. However, according to the Ministry of Agriculture and Farmers’ Welfare, maize production is expected to decline this year and traders may not meet demand once distilleries begin producing ethanol using maize.
AMERICAS
CCUS convening – Two US task forces meant to tackle permitting problems related to carbon capture, utilisation, and storage (CCUS) will convene next month, according to a notice published Tuesday in the Federal Register. The task forces intend to study the challenges faced in permitting to improve performance in the area, with one group focusing on federal lands and the outer continental shelf, and the other on non-federal lands. The tasks forces will undertake an inventory of existing approaches, develop a common model for state-level oversight, provide technical assistance to states and recommendations to federal agencies, study the use of CO2 into valuable products, and identify priority pipelines, framework gaps, and financial mechanisms available to project developers, amongst other activities. Permitting problems have been a key barrier to the deployment and advancement of CCUS and carbon removal technologies. Meetings will be publicly available via webcast.
CA disclosure – A group of 35 firms, including retail outfit Patagonia, carbon removal company Heirloom, and hospital provider Dignity Health have signed a letter Monday urging California Governor Gavin Newsom (D) to secure funding for the implementation of SB 253 and SB 261, as Governor Newsom didn’t provide funding in his January budget to implement the two bills. SB 253 mandates companies doing business in California with annual revenues of over $1 bln to disclose full Scope 1-3 emissions while SB 261 requires companies doing business in California with annual gross revenues of over $500 mln to report on climate-related financial risk. Federally, the SEC has issued a stay on its climate disclosure rules, which included estimates of Scope 1 and 2 emissions reporting, in light of numerous legal challenges.
AND FINALLY…
Shifting the burden – The European Commission will take steps to modernise and green its real estate and reduce its carbon footprint by selling 23 of its buildings for €900 mln to the the Federal Holding and Investment Company (SFPIM), the ‘Belgian Sovereign Wealth Fund’, which will use them in its plan for urban redevelopment. “This sale will play a significant part in the Commission’s efforts to reduce its office surface by 25% by 2030” and to “create economies of scale by regrouping staff in fewer, larger and more energy efficient buildings”, announced the Commission. While replacing older buildings with modern, more flexible offices also increases its attractiveness as an employer, the statement said. SFPIM meanwhile will renovate the buildings to become more sustainable and will use them in its transformation of the European quarter into an attractive and green area where office buildings co-exist with dwellings, retail, and leisure.
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