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TOP STORY
PREVIEW: Carbon credits to assume central role at Paris clean cooking summit
A clean cooking summit due to be held in Paris next week, organised by the International Energy Agency (IEA), will place a significant focus on voluntary carbon markets as governments and private sector stakeholders seek to address current gaps in climate finance flows to Africa.
EMEA
EU grids should more than double in order to meet Paris Agreement goals -report
Collective grid capacity across 25 EU member states needs to more than double by 2035 in order to meet the Paris Agreement goal to keep global warming below 1.5C, according to research published on Tuesday.
UK set to miss target for electric cars after government delayed ban on new fossil fuel sales
The UK car industry is on course to miss its legal net zero target after sales of electric vehicles to private buyers tumbled, warns the Society of Motor Manufacturers and Traders (SMMT), the UK car manufacturing association.
Uniper posts 12% drop in EU ETS-covered fossil burn
Uniper’s fossil-based power generation covered by the EU carbon market fell 12% in Q1, year-on-year, the utility reported Tuesday in quarterly results.
Euro Markets: EUAs stabilise after sharp morning drop as traders anticipate weekly position data
European carbon prices dropped steeply on Tuesday morning amid robust selling as traders took profit after EUAs failed to breach the psychologically important €75.00 level for a third time, before stabilising for the rest of the session as participants began to anticipate Wednesday’s Commitment of Traders data.
AMERICAS
US Policy Roundup: Colorado cap-and-trade legislation runs out of time, some Western US states adopt CCS policy
Lawmakers in Colorado failed to implement a cap-and-trade programme as this year’s legislative session approaches its end on Wednesday, although the state joined its Western US neighbours in advancing several carbon capture and storage (CCS) bills.
ASIA PACIFIC
OECD adds pressure on NZ government to reform ETS
The Organisation for Economic Co-operation and Development (OECD) has joined the chorus of voices calling for reforms to New Zealand’s emissions trading scheme alongside addressing emissions in the agriculture sector, it said in an annual survey.
Oil-rich Kazakhstan joins global carbon pricing alliance
Kazakhstan has become the latest country to join the Global Carbon Pricing Challenge (GCPC) – an initiative aiming to cover 60% of the world’s emissions with carbon pricing by 2030 – the Central Asian nation announced Tuesday.
South Korea to consider carbon credit-linked loan product
Government agencies in South Korea will start a discussion around a carbon finance product that allows companies to repay loans with carbon credits, according to local media reports.
INTERNATIONAL
2023 hailed as a possible turning point for clean power, as renewables surpass 30% of global generation
Solar and wind growth has propelled the world past 30% renewable electricity for the first time in 2023, marking a turning point in the shift away from fossil fuel power, according to a review of country-level data published on Wednesday.
VOLUNTARY
Eight voluntary carbon standards update crediting programmes seeking CORSIA eligibility
ICAO, the UN agency that operates CORSIA, has confirmed the eight voluntary carbon standards that submitted material updates to crediting programmes as they seek eligibility for the current phase of the UN’s international aviation offsetting scheme.
Puro consults on updating biochar carbon removal methodology
Puro.earth is set to revise its methodology for crediting voluntary carbon removals from biochar projects and is inviting feedback on the current text before opening a three-week long public consultation in July.
BIODIVERSITY (FREE TO READ)
High monitoring costs seen hindering nature restoration efforts in Latin America
Nature restoration practices across Latin America lack effective tools to quantify their outcomes due to prohibitive monitoring costs, which hamper the long-term success of the projects, a study has revealed.
G20 countries urged to align their bioeconomy efforts
G20 countries are advancing their efforts to scale ‘bioeconomy’ as a means to promote sustainable models that foster biodiversity conservation, though actions must be taken to enhance convergence and comparability between different national approaches, a study has said.
Ecosystem Condition Protocol to launch draft at COP16
An Ecosystem Condition (EC) Protocol for standardising the measurement of ecosystem conditions across corporate reporting and biodiversity markets, with a similar format to the Greenhouse Gas (GHG) Protocol, aims to launch a draft version this year.
Soil assessments critical for tracking progress of nature restoration projects, expert says
Underestimating soil health when tracking the progress of nature restoration projects could lead to unreliable or incomplete assessments, a biodiversity expert with infrastructure consultants AECOM has said.
Biodiversity Pulse: Tuesday May 7, 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
Carbon Policy Development Conclave – New Delhi, May 16: Carbon Markets Association of India (CMAI) presents this exclusive event in collaboration with Diligentia Services a step towards accelerating Net Zero Transition. Set to unfold at Le Meridien in New Delhi, this event pioneers sustainable policy action, driving us closer to climate goals. Be part of this unprecedented initiative, aimed at empowering stakeholders from key Ministries, Embassies, Industry Leaders, Think-Tanks, and Policy-Makers to harness environmental credits for sustainable endeavors. Limited Paid Delegate Seats are available. Secure yours now by registering here. For collaboration opportunities, contact us at secretary@cma-india.in. Learn more at www.cma-india.in.
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
Renewables roll-out – Arup has entered into a Masters Service Agreement with TotalEnergies to support the energy company’s global goal to develop 100 GW of renewable energy capacity by 2030, it was announced today. The agreement builds on the existing relationship between the two organisations, with the sustainable development consultancy previously having supported the French energy company on offshore wind and solar energy projects around the world.
Inputs open – The UNFCCC is calling for public input on matters of providing functionality for the treatment of financial security interests in Article 6.4 emissions reductions (A6.4ERs) within the mechanism registry. The call for public inputs is open for a four-week period from May 3 – 31, 2024 and submissions are invited via email to A6.4mechanism-info@unfccc.int. The Supervisory Body (SBM) requested the secretariat to launch a call for public input on this matter and requested the secretariat take these inputs into account when preparing the information note.
EMEA
Blue chip obligation – The UK’s Labour Party is to legally oblige big firms to comply with UN climate goals as set under the Paris Agreement and to put in place transition plans to help keep global temperature rise to below 1.5C, the Times reports. Under a Labour government it would “be a [legal] requirement for companies to have transition plans for how they’re going to comply with the 1.5C target,” said Ed Miliband, the shadow climate change secretary.
CCUS call – The UK government has published a call for evidence on how it envisages non-pipeline transport (NPT) being delivered in the UK as well as evidence to better understand cross-border CO2 networks. “Carbon capture, usage and storage (CCUS) will be essential to meeting the UK’s 2050 net zero target, playing a vital role in levelling up the economy, supporting the low-carbon economic transformation of our industrial regions, and creating new high value jobs,” the government website states. NPT can play a key role in instances where a pipeline is technically and/or commercially unfeasible, it says. The call for evidence closes on July 16, and following this, the government will use the responses to inform policy development and support the deployment of NPT in the UK and cross-border CO2 networks.
Enhanced weathering advances – Two UK companies have teamed up to trial a process of applying enzymes to enhanced rock weathering for much faster permanent CO2 removals, they announced on Tuesday. Veolia, a resource management company, is looking to reduce the energy consumption, emissions, and timescales for carbon removals. FabricNano, a biotech startup, is providing patented technology to immobilise the enzyme directly onto large particle basalt, accelerating the time it takes to sequester carbon from decades to just a few years. To run the trial, Veolia will spread 30,000 tonnes of basalt rock across farmland in the UK this year. FabricNano’s protein powder, combined with silicate rock, will be spread on a stretch of that farmland.
New EU template – The European Commission on Tuesday released a new template for climate reporting by member states, with updates to reports on the use of revenue generated by the EU ETS, national emissions covered by the Effort Sharing Regulation, and emissions and removals under the Land Use, Land Use Change, and Forestry Regulation. The data collected through the templates helps the Commission decide whether EU countries and the bloc are on track for their climate targets, and feeds into the annual EU climate action progress report. The update takes into account the accounting of removals from bioenergy with carbon capture and storage, which are not currently regulated by EU climate law and cannot be counted towards emission reduction targets under the effort sharing measure.
ASIA PACIFIC
First visit – The US will host China’s Special Envoy for Climate Change Liu Zhenmin in Washington on Wednesday and Thursday, according to Reuters. The visit will mark Liu’s first to Washington in his new role after replacing veteran climate envoy Xie Zhenhua, who stepped down due to health reasons earlier this year. The two countries in November agreed to jointly tackle global warming through multiple initiatives including large-scale CCUS projects and ensure their 2035 climate targets will include all GHG emissions.
SAF procurement – Singapore Airlines will buy 1,000 tonnes of sustainable aviation fuel (SAF) from Neste, the first purchase of the low-carbon jet fuel from the Finnish firm’s refinery in the city-state, the companies announced this week. Neste will deliver the blended jet fuel to Changi Airport’s fuel hydrant system in two batches this year. Its recently built Singapore refinery has the capacity to produce a million tonnes of SAF each year, making it the world’s largest SAF production facility.
Participants needed – Japan’s environment ministry is looking for domestic financial institutions to participate in a pilot project, in order to create the foundation for the industry to promote natural capital analysis and disclosure, according to a document released Tuesday. Project participants are expected to help the government understand and analyse the climate and natural factors in their investment and loan portfolios. The application window will be open until June 7.
Two-week notice – The Supreme Court (SC) of Pakistan has directed the federal government to constitute a Climate Change Authority under Pakistan’s Climate Change Act, and allocate funds to address the effects of climate change, within two weeks, the Business Recorder reported. The establishment of authority is essential to the formation of climate change fund. SC’s decision comes as a petition of Public Interest Law Association of Pakistan was filed against the government’s failure to form an authority and allocate funds. Pakistan consists of four provinces and each province is required to nominate one member for the body. Meanwhile, advocate generals of three provinces filed the report on climate policy, even as the government of Balochistan awaits approval from the provincial cabinet. Pakistan is one of the most vulnerable countries to climate change.
Growing together – The Commonwealth Bank of Australia (CBA) announced it is expanding its partnership with agricultural emissions platform Ruminati. CBA said from July it would begin a staged programme of work that would make Rumati’s platform available on an opt-in basis to its agribusiness customers across Australia. The new partnership will also see the two companies collaborate on the development of new products and services to support the bank’s customers to lower carbon emissions and assist them with optimising opportunities and managing risks, CBA said. Ruminati’s platform includes an emissions calculator and scenario planner, allowing producers to calculate their baseline and model farm activities to help reduce net emissions.
We are committed – The state of Sarawak in Malaysia is committed to supporting the Southeast Asian nation’s target of 45% emissions reduction by 2030, Sarawak’s governor Wan Junaidi Tuanku Jaafar, said. He added that the state is already leading in the development of green energy initiatives such as hydropower, solar, biomass, biofuel, hydrogen, sustainable aviation fuel and the implementation of carbon capture, utilisation, and storage technology, the Malay Mail reported. He said that Sarawak is also pioneering the development of a public transport system powered by green hydrogen energy that emits zero carbon. Moreover, the government has implemented various initiatives including the gazetting of Totally Protected Areas (TPAs) and has passed the Environment (Reduction of Greenhouse Gases Emission) Bill, 2023 in its efforts to ensure the sustainability of the environment.
Investments/Cuts – The Victorian state budget was handed down Tuesday, delivering funding for the state’s energy transition as well as a range of environmental protection measures. Some A$18 mln ($11.8 mln) was put to continue planning for offshore wind generation, and A$17 mln to further plan and design a renewable energy terminal at the Port of Hastings as part of the government’s commitment to reaching 2 GW of offshore wind capacity by 2032. The government is also providing A$116 mln to the Future Forests programme to help restore the state’s native forests, including funding for the Great Outdoor Taskforce to advice on future uses of our state forests previously used for timber harvesting. Despite these investments, the Labor party’s budget was one of major project cuts and scrapping of election promises in a bid to combat the state’s high inflation, workforce shortages, and large debts.
AMERICAS
GHG reduction funding – The US Environmental Protection Agency (EPA) on Tuesday announced $9 mln in grant funding for Tribal governments and eligible territories to implement projects that reduce diesel emissions from older diesel engines. Some $8 mln of the total will be allocated to federally recognised Tribal governments, intertribal consortia, and Alaska Native Villages, while the remaining $1 mln will be made available to territories, including government agencies of the US Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands. Application packages must be submitted to Grants.gov by Dec. 6 at 2359 EST.
Superfund supermajority – Vermont Senate Bill (SB) 259, which would target fossil fuel companies for their payments covering their emissions from the beginning of 1995 to the end of 2024, is on track to become law after being approved by supermajorities in both of the state’s legislative bodies, reported E&E News. The bill cleared a significant test Friday when the House of Representatives voted 93-39 to approve SB 259 — the precise number of supporters it would need to overcome a potential veto by Governor Phil Scott (R). The bill now awaits approval in the Senate, where an earlier version was passed 26-3. SB 259 has attracted some Republican support, and although Scott has criticised it, the state’s Agency on Natural Resources has worked with lawmakers on the details of the proposal.
Offsetting travel – Harvard Business School (HBS) is recommending members of the school’s community to offset their travel emissions with the purchase of credits from a portfolio of carbon projects launched by offset platform CNaught and ratings agency Calyx Global at the end of last month. In a blog post on Tuesday, HBS said that CNaught’s curated portfolio to manage risk met the school’s standards and criteria on climate, health, and equity. The portfolio includes 90% of credits rated A or above by Calyx Global and may or may not have additional societal benefits, while 9.5% are B+ or above and include health and equity benefits. The school also announced significantly reducing its emissions and partially offsetting required academic student travel along with implementing other sustainability initiatives as part of HBS’ goal to be fossil fuel neutral by 2026 and fossil fuel free by 2050 for campus energy use and for vehicles.
Zefiro expansion – Offset developer Zefiro Methane announced Tuesday that its subsidiary Plants & Goodwin (P&G) has opened a new operations facility in West Virginia, the company’s first official presence in the state. Situated in Buckhannon, the company said the new facility is expected to reduce costs and transportation emissions related to projects in the state, increase project completion speed, and allow for more aggressive bids on state remediation projects. Zefiro aims to generate offsets by plugging oil and gas wells, and it acquired P&G in May 2023.
VOLUNTARY
Tangible impact – Carbon Tanzania has facilitated $6.9 mln in revenue for Tanzanian forest communities through carbon market participation, amounting to an increase of over 50% from 2022, according to the developer’s latest impact report. Its projects have protected some 690,500 hectares of forest, double the size of Luxembourg, and reduced some 899,825 tonnes of CO2, equivalent to taking almost 200,000 cars off the road for a year. The new Social Return on Investment tool used calculated a Social Return on Investment (SRI) of $25 for every $1 invested, as the developer told Carbon Pulse in a recent interview.
INVESTMENT
Newcomer moves in – Storied UK commodities trader ED&F Man, best known for hauling sugar and coffee around the world, is in talks to be taken over by US energy firm Hartree Partners, according to people familiar, as reported by Bloomberg. A potential deal would follow Hartree’s purchase of a significant amount of ED&F Man’s more than $1 bln in debt, the people said. Discussions between Hartree, founded by ex-Goldman Sachs Group energy traders, and ED&F Man are ongoing and no final decision has been made, they say. Energy traders including Hartree have been branching out into commodity markets in recent times, due to the lucrative returns available.
SCIENCE & TECH
Some way still to go – The wind industry is still developing into a maturing industry, according to the CEO of wind turbine manufacturing giant Vestas Wind Systems, in a conversation with Bloomberg. “We are building scale and as long as there is not that maturity then you always will fight around the next project,” said Henrik Andersen, who was forced to raise the price of Vestas wind turbines last year following soaring costs and supply chain disruptions in the aftermath of the pandemic, which nevertheless helped get the Danish company back on track for profitability. His comments come at a time when the wind industry has never been bigger, reached investments of a record $217 bln last year, up nearly 50% from five years prior, according to BloombergNEF estimates. While wind power has never been more important to contributing to clean energy growth, though it accounts for less than 10% of the global electricity mix. Andersen said that wind power doesn’t require as much government support as many assume, because in many cases a new wind farm is cheaper in the long run than a fossil-based alternative, even though the technology may still be more expensive when compared with existing fossil fuel-based generation.
AND FINALLY…
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