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TOP STORY
Voluntary credit retirements on track for record year despite wave of bad press
Credit retirements from the four main standard bodies in the voluntary carbon market remain on track for a record year despite a wave of bad press around issuing projects, data from Carbon Pulse’s VCM portal shows.
EMEA
Lufthansa among 20 airlines investigated by EU over greenwashing concerns -media
Airlines within the Lufthansa Group are among 20 carriers currently under investigation by the European Commission over potential greenwashing practices, including the use of voluntary carbon credits.
POLL: MSR to remove fewest permits to date in 2024-25 amid marginal decrease in EU ETS surplus -analysts
The annual reduction in EU carbon allowances for 2024-25 through the Market Stability Reserve will be the smallest yet, reflecting a slight decrease in the market’s overall supply in 2023, according to a poll of analysts.
European coal output, imports slump amid drop in energy demand and shift to renewables
European hard coal output dropped by 9% in 2023, while lignite production plunged 24% year-on-year as demand for fossil-fired energy tumbled, according to an annual report from Euracoal, the bloc’s coal association.
Euro Markets: EUAs post 7.6% weekly gain despite abrupt about-turn and daily loss as profit-taking emerges
European carbon allowances posted a weekly gain of 7.6% despite a volatile session on Friday, in which prices reached a 13-day high but unwound all their gains as the short squeeze of the last three sessions gave way to profit-taking after Thursday’s 6.9% jump.
UK government loses second ruling over inadequate climate plan
The UK government has lost a second case brought by environmental campaigners for not doing enough to meet its targets for cutting greenhouse gas emissions.
AMERICAS
Senior lawmakers introduce legislation to create carbon market in Brazil’s Parana
Two legislators in Parana this week introduced a bill that would establish a regulated carbon market in the southern Brazil state.
Brazilian development bank signs forest concessions agreement, pledges to support state carbon markets
Brazil’s national development bank on Friday signed a deal on concessions for restoration and sustainable forestry projects on almost 73,000 hectares of deforested land, while also agreeing to support two states in their efforts to scale their own carbon markets.
New Jersey lawmaker introduces cap-and-trade bill to regulate state’s non-power emissions
A New Jersey legislator introduced a bill this week that would direct the state’s Department of Environmental Protection (DEP) to implement a cap-and-trade programme to cover most greenhouse gas emissions not regulated under RGGI.
Researchers caution Alaska on reputational risks of offset project regulations
A US non-profit research group has outlined criteria to avoid reputational risks in drafting regulations regarding offset projects on state lands, in comments submitted to the Alaska Department of Natural Resources (DNR).
Policy moves to soon drive CCAs to new heights, while RGAs overvalued -analysts
Policy developments seen emerging in the coming months will lift California Carbon Allowance (CCA) prices to a new record high above $45, analysts predicted this week, while they considered RGGI Allowances (RGA) overvalued at current levels.
CFTC data reveals largest RGGI drawdown for producers so far this year
Compliance entities slashed RGGI Allowance (RGA) holdings and net length in California Carbon Allowances (CCA), while managed money built positions across longer-dated North American carbon market vintages, data from the US Commodity Futures Trading Commission (CFTC) on Friday showed.
ASIA PACIFIC
Australia puts forward options to overhaul landfill gas ACCU method
The Australian government has put forward options to rework the landfill gas carbon credit methodology, proposing to increase current baselines marginally and gradually raising them on an annual basis, according to a consultation.
Green steel dreams could cut 220Mt of CO2 per year, Australian miner says
One of the world’s largest iron ore producers has plans to send 100 million tonnes of green iron to China, using vast amounts of clean hydrogen created in the Australian desert, and says it will ultimately cut 220 million tonnes in CO2 emissions per year in the process.
UK commodity house to launch carbon trading platform in New Zealand -media
A UK trading house will launch a carbon trading platform in New Zealand soon, with several staff members of a major NZ market player joining the newcomer, according to local media.
Tesla to enter South Korean carmaker carbon credit scheme
EV-maker Tesla has obtained approval from the Korean government to generate and trade carbon credits in the country, expanding the coverage of its automotive regulatory credit-based business model beyond the US and China.
South Korea could reach industrial emissions targets with demand-side policy incentives -report
South Korea could see its industrial emissions targets well on track if more policy incentives are provided to boost domestic demand for low carbon steel and cement products, according to researchers.
VOLUNTARY
New reforestation project in Sierra Leone under fire for allegedly abusing land owner rights
A reforestation project in Sierra Leone has come under fire for allegedly abusing landowner rights before the project was registered with Verra, although the developers say correct procedures were followed.
Mongolian non-profit launches voluntary forest carbon programme
An Ulaanbaatar-based non-profit has launched a domestic voluntary forest carbon credit scheme, targeting domestic emitters, particularly in Mongolia’s booming mining sector, as well as foreign buyers.
INTERNATIONAL
BRIEFING: Packed election year risks silencing discussions on climate, say former UN leaders
Two former UN leaders highlighted the world risks losing sight of the urgency to tackle climate change over this packed election year, with conflicts and short-termism taking political priority, during an event in London today.
Huge gap in carbon removal efforts needed to meet Paris targets, researchers warn
There is a significant gap in the CO2 removal efforts needed to meet the temperature goals of the Paris Agreement, according to researchers.
BIODIVERSITY (FREE TO READ)
INTERVIEW: Yale researchers to develop biodiversity credit methodologies for agroforestry
Researchers at Yale University have launched an initiative to design three biodiversity credit methodologies for agroforestry projects at smallholder farms in Latin America, Carbon Pulse has learned.
FEATURE: Corporates seek customised projects to tackle their waste footprints
Corporates are keen to support customised waste collection and recycling programmes that equate to their waste production footprint and potentially tie back to their own supply chain, with the plastic credit model not suited to all circumstances, say market stakeholders.
SBTi offset issue has negative legacy for biodiversity credits, lawyer says
The carbon offset controversy at Science Based Targets initiative (SBTi) has detrimental consequences for the nascent voluntary biodiversity credit markets, which are paralysed by confusion, a legal expert has said.
Efforts to integrate biodiversity targets across sectors largely ineffective, study says
Insufficient funding as well as vaguely formulated and conflicting targets have largely hampered the integration of biodiversity into decision-making across different sectors, a paper has said, calling for more consistent and coherent policies to be established.
US startup launches to scale fundings towards coastal NbS, biodiversity conservation
A US-headquartered consultancy launched this week to bolster and expedite funding towards nature-based solutions (NbS) and blue carbon, planning to engage in the nascent biodiversity credit market.
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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
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…
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
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BITE-SIZED UPDATES FROM AROUND THE WORLD
INTERNATIONAL
Coal contradictions – Banks are still financing the coal industry with loans of hundreds of billions of dollars, despite pledges by a number of countries to phase out coal power. The study by German environmental and human rights organisation Urgewald and partners found that global banks including Deutsche Bank lent a total of $470 bln to companies in the coal industry between Jan. 2021 and Dec. 2023, primarily in the form of loans or by participating in the issuance of securities by these companies. The huge financial aid contradicts the official goals of the 2021-founded Net Zero Banking Alliance in which 144 major banks committed, among other things, to reducing emissions from their business operations and portfolios to net zero by 2050 at the latest. (spiegel.de)
EMEA
Abandoning the agenda – Fossil fuel companies will be allowed to explore for oil and gas under offshore wind sites for the first time, the UK government will announce on Friday, further demonstrating that ministers are abandoning the climate agenda, say campaigners. The North Sea Transition Authority (NSTA), which regulates North Sea oil and gas production, will confirm the granting of licences to about 30 companies to look for hydrocarbons on sites earmarked for future offshore windfarms, the Guardian reports. The move has brought renewed criticism from environmentalists concerned that future oil and gas production may hamper clean energy generation, while it will also give the embattled prime minister a welcome piece of news to sell to his backbenchers, many of who are eager to see more oil and gas produced in the North Sea. The oil exploration itself will not involve any drilling, say sources, with companies largely using data to decide whether sites can be profitable for extraction. Supporters of the scheme say that if any sites prove profitable for production, then the oil and gas platforms will be able to use power from the wind turbines to lower their emissions, however experts say that emissions from burning any oil and gas produced will far outweigh any savings in the drilling and extraction process.
Overshoot card – As May 3 is the day we reach the use of nature’s budget for the entire year, green groups and NGOs sent a letter to EU leaders asking to make a top political priority of the triple planetary crisis of climate change, biodiversity loss, and pollution. Particularly concerned over the upcoming elections in June, they insist the EU will have a “momentous opportunity and responsibility to turn the tide” over the next months. Among their requests, there is a radical increase in public investments.
ASIA PACIFIC
Baseload bonus – French renewable company Neoen said it expects to sign more ‘baseload renewable’ contracts in Australia, as it rolls out more battery projects across the country, Renew Economy reports. The company is building five new battery projects in Australia, with CEO Xavier Barbaro telling an investor after the company’s first quarter results Thursday that more customers are looking for “baseload” renewables contracts to meet their energy needs. This would give Neoen the opportunity to combine the output of Australia’s wind and solar portfolio with its growing fleet of batteries and attract a ‘price premium’ for the projects.
Electrifying news – The share of coal in India’s total installed electricity capacity fell below 50% in 2023-24, for the first time ever, according to a report released by the non-profit Council on Energy, Environment and Water (CEEW). Renewable energy sources accounted for 71% of the 26 GW of power generation capacity in 2023-24 and while the South Asian country’s total installed capacity reached 442 GW, renewables contributed 144 GW (33%) and hydro 47 GW (11%), the Hindustan Times reported. India has pledged to reduce its emissions intensity by 45% from 2005 levels by 2030 and to generate 50% of its power capacity from non-fossil sources by the end of this decade.
AMERICAS
ALUS right – ALUS has introduced ALUS Nature & Climate Solutions, an expanded range of sponsorship, donation, and investment opportunities aimed at supporting climate and biodiversity goals through agri-environmental projects. This initiative is designed to provide socio-economic and environmental benefits to communities and ecosystems. Building on the success of the New Acre Project, which has been active since 2016 and has funnelled over C$6 mln into environmental projects, this new suite includes the rebranded New Acre Nature Investments. It targets investors looking for tangible ecosystem service results such as carbon capture. ALUS, a charity operating in 39 communities across Canada and the US, engages nearly 1,800 farmers and ranchers who manage over 52,600 acres dedicated to enhancing wildlife habitat, carbon sequestration, and water quality, while also mitigating flood and drought risks.
Extended SAF support – Representatives of United Airlines and American Airlines said existing federal incentives to boost sustainable aviation fuel (SAF) production could be insufficient to help the industry achieve decarbonisation without fuel tax credit extension, E&E reported Friday. The US has introduced tax credits under section 40B and 45Z of the Inflation Reduction Act (IRA) worth up to $1.75 per gallon for SAF, and recently published guidance incorporating an updated model for GHG intensity calculation for 40B – which credits SAF production between 2023-24. Meanwhile, 40Z is set to take effect beginning Jan. 1, 2025, until Dec. 31, 2027. But aviation industry stakeholders are now calling for a SAF tax credit extension to support their GHG reduction goals.
Hawaii policy – Hawaii Governor Josh Green (D) announced the state’s Climate Advisory Team, tasked with drafting climate resilience policy, including steps to create a fund to mitigate climate change. The committee will model and analyse the risk of natural disasters and wildfires, develop a customised fund structure, evaluate and determine sources of funding, and issue a report to the governor including potential legislation.
Stay away from Hawaii – Honolulu is urging the Supreme Court to not be involved in a long-running procedural dispute over climate lawsuits that could cost the oil and gas industry billions of dollars, E&E News reported Friday. The state capital filed a Supreme Court brief Wednesday in response to a petition from the oil industry for the justices to consider a question they repeatedly declined to answer last year: whether federal law prevents dozens of US cities, states and counties from suing Exxon Mobil, Chevron and other oil majors in state court for lying to their customers about the danger of fossil fuels. Represented by Sher Edling, a San Francisco law firm that backs many of the climate liability lawsuits, the city and county of Honolulu told the Supreme Court that the cases belong in front of state judges, who have jurisdiction over consumer matters.
CCS falls short – Sask Power’s Boundary Dam project, a coal-fired power plant with CCS, continues to miss its emissions reductions goals, according a report authored by international non-profit Institute for Energy Economics and Financial Analysis. The plant aimed to capture up to 90% of its emissions, or about 1 Mt of CO2/yr, but that goal has never been reached, with an average capture rate of 57%. Capture is limited by technical issues and demand for CO2 from the energy industry for enhanced oil recovery.
Connecticut climate law – Connecticut House Bill (HB) 5004 passed the state’s lower legislative body on Wednesday following a lengthy debate, reported Connecticut News Junkie. Amendments were made to alter the bill’s fiscal notes, while three Republican amendments to the Democratic-sponsored legislation were defeated. Representatives from the energy industry have expressed concerns around the potential effects of the significant shift to electrification targetted in HB 5004.
BECCS in Brazil – Brazil’s biofuels company FS Agrisolutions Industria de Biocombustiveis is developing a bioenergy carbon capture and storage (BECCS) project at its ethanol plant in Lucas do Rio Verde, in Mato Grosso state, BNamericas reported Friday. Once operational, the project could inject up to 1,160 tonnes of CO2 captured during the biofuel fermentation stage. The project is currently in the the final stages of technical studies to make it geologically viable, according to the firm’s vice president. The project was developed in accordance with the guidelines of the California regulator ARB and the US Environmental Protection Agency’s Class VI standards and regulations.
VOLUNTARY
Double deal – Colt Technology Services has launched two new sustainability initiatives to aid in reaching its net zero goals and support those of its customers. The company is partnering with Supercritical to invest in vetted carbon removal projects, allowing customers to count these purchases towards their own climate targets. This includes the use of biochar, a substance that not only stores carbon for over 1,000 years but also enhances soil health, supported by global governing bodies. Colt is also collaborating with Urban Miners in Sweden to recover precious metals from unused IT equipment, highlighting a pilot program that achieved 99.4% recyclability and reuse of materials. This program is set to expand to multiple European countries.
INVESTMENT
Data centre demand – Microsoft and Brookfield Renewable Partners signed a $10bln deal to develop 10.5GW of renewable energy projects across the US and Europe between 2026 and 2030, the FT reports. Brookfield managed over 7000 power generating facilities across five continents, but Microsoft’s energy demand for AI and cloud computing will likely require more capacity.
Mounting pressure – HSBC is facing growing pressure from shareholders over green finance ahead of its annual general meeting (AGM), who are asking for greater clarity on how it intends to use the $1 trillion they have pledged to spend on green finance by 2030. ShareAction, a responsible investment campaigner, said it plans to read out a statement at the meeting on Friday on behalf of a shareholder coalition amidst transparency concerns. Greater transparency would allow the shareholders to assess whether the bank is on a path to net zero and is contributing its fair share of financing to plug climate finance gaps, ShareAction has said. The investor group will also urge the board to set a funding target for renewable energy. The coalition of investors, worth nearly a trillion dollars of assets under management, includes the Ethos Foundation, Epworth Investment Management, Royal London Asset Management, Axiom Alternative Investments, La Francaise Asset Management, Jesuits in Britain, and Folksam pension fund. (Independent)
SCIENCE & TECH
Beep beep – Self-driving trucks could cut fuel use 13-32% compared to standard diesel trucks, E&E News reported Friday. A number of US companies are testing routes in and around Dallas, Texas, with plans to start making deliveries in fully autonomous trucks without a human driver later this year.
Concrete news – AlterBiota, a Nova Scotia-based startup developing a concrete additive that aims to reduce the carbon footprint of concrete, secured C$4 mln ($2.9 mln) in seed financing, Betakit reported. The company has developed a biographene admixture using byproducts from the forestry industry, which it claims to produce a carbon-negative additive that makes concrete stronger. AlterBiota plans to invest the capital into industrial product trials, a commercial-scale plant, and hiring.
AND FINALLY…
Pint-sized revolution – Dutch brewing company Heineken NV has announced an investment of NT$13.5 bln ($414 mln) over the next five years in Taiwan, with plans to make its Pingtung-based facility reach net zero by 2030, Taiwan News and United Daily News reported. Heineken said it plans to purchase renewable energy and install solar panels to reduce more than 550,000 tonnes of CO2 at the Pingtung brewery, its major production base for the Northeast Asian market, by the end of this decade. The Dutch company has set an overall target of reaching net zero by 2040.
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