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TOP STORY
Indonesia environment minister lashes REDD+ project developer for spreading carbon regulation “misinformation”
Indonesia’s minister for environment and forestry has defended the country’s much-criticised carbon trading regulations, whilst reprimanding comments made by the head of one of the country’s largest REDD+ project developers.
EMEA
Extending UK ETS to heating and road transport would cut emissions -report
Expanding the UK carbon market to cover heating and road transport fuels could help to reduce emissions significantly, but further measures are needed to offset the cost to lower-income households and reach net zero emissions by 2050, according to research published Thursday.
NGO claims ArcelorMittal is failing to follow through on commitments to decarbonise
Steelmaker ArcelorMittal is accused of walking back on commitments to decarbonise, and returning more money to shareholders than it puts into climate action, in a report released Wednesday by an NGO.
Euro Markets: EUAs shrug off weak gas to rally a second day on auction pause and another cut in fund shorts
European carbon prices rose steadily on Wednesday, ignoring weakness in gas as traders bought in anticipation of a pause in the auction programme for the next two days, while the weekly positions data showed investment funds adding to their bullish bets for a second week, while trimming their short positions moderately.
AMERICAS
BRIEFING: Federal judge questions basis of discrimination in Washington cap-and-trade lawsuit
A US federal district judge has questioned the nature of a power producer’s electricity consumers, its allocation of no-cost allowances as per Washington state’s Climate Commitment Act (CCA), and the future of the facility’s participation in the cap-and-trade programme, according to legal arguments heard in court.
ARB’s highest offset issuance of 2024 lacks DEBs-tagged units, keeping their premiums elevated
California regulator ARB issued the highest number of compliance-grade offsets thus far this year but none with direct environmental benefits (DEBs) to the state, holding DEBs-tagged premiums above $20, data published Wednesday showed.
Biotech firm, gas producer call for ramp-up of CI stringency in California LCFS scheme
California must significantly ramp up the proposed carbon intensity (CI) target under its Low Carbon Fuel Standard (LCFS) to rid the market of its surplus, according to submissions to the market regulator’s ongoing stakeholder consultation process.
Washington CFS rulemaking to deviate from federal GREET model updates
Washington’s Department of Ecology (ECY) staff received pushback from stakeholders for choosing not to make changes to its GREET model during the latest round of Clean Fuels Standard (CFS) rulemaking, after the federal government recently updated their carbon intensity (CI) standard calculations for sustainable aviation fuel (SAF) tax credits.
Expanded ETS proposal, extensive oil production cloud Brazilian climate policy -report
The enhanced eligibility of REDD+ credits in partially-approved ETS legislation in Brazil, alongside increased investment in oil production, could contradict the country’s climate policy ambitions, according to a report published Wednesday.
ASIA PACIFIC
ASEAN region runs risk of “severe underinvestment” from the private sector across all energy technologies
Southeast Asia is witnessing significant underinvestment in the energy transition and renewable energy, mostly because the private sector has been contributing a negligible percentage of its asset base, a financial consultant told a virtual conference on Wednesday.
INTERVIEW: Papua New Guinea Article 6 trade hinges on carbon regulations being finalised
Papua New Guinea’s participation in the Article 6 carbon market depends upon regulation that governs the scheme being finalised, though there is still no time table for when that will happen, according to the head of its Climate Change Development Authority (CCDA).
Australia’s mining sector well placed to lead on Safeguard credits -expert
Miners could emerge as frontrunners in generating Safeguard Mechanism Credits (SMCs) under Australia’s main carbon market programme thanks to their ability to abate emissions and the varied GHG profiles of different assets, a conference in the country’s unofficial mining capital of Perth heard Thursday.
INTERNATIONAL
Brazil, India, Saudi Arabia among largest emitters most exposed to climate impacts
A third of the countries responsible for the vast majority of global emissions could face some of the harshest climate change impacts, especially from heat, according to a new report by a risk intelligence company.
VOLUNTARY
INTERVIEW: Developer sells clean cooking credits for $30 through use of more conservative methodology
A developer of clean cookstove projects in Kenya has sold its first tranche of credits to a multilateral buyer for several times the typical value of cookstove credits on the voluntary carbon market, with the credits the first to be issued for a biomass project in Africa under a new methodology.
Surge of patents in CDR technologies this year signals market set for rapid growth
An explosion of patents has lit up the carbon dioxide removal (CDR) market, signalling the nascent market is on the cusp of entering into the growth stage.
Malawi issues letter of authorisation to sell 1.5 mln carbon credits at auction
Malawi’s Ministry of Natural Resources and Climate Change has authorised a private firm to auction the country’s carbon credits on the international market, according to local media reports.
Carbon removal competition selects 20 finalists to compete for $50 mln prize
A global competition to support innovators developing carbon removal solutions has announced its cohort of 20 finalists set to compete in the last stage, with $50 million up for grabs for the winning team able to demonstrate sustainable and cost-effective carbon removal from the atmosphere or ocean.
BIODIVERSITY (FREE TO READ)
INTERVIEW: Poor demand from Global North hampers biodiversity credit uptake in Africa
European and North American companies are not keen to invest in biodiversity credit initiatives in Africa, as the continent strives for innovative funding solutions alongside carbon credits to preserve its nature, a conservation finance expert has told Carbon Pulse.
Philippines govt, conglomerates team up to protect massive marine ecosystem
The Philippines government has partnered with three of the nation’s biggest conglomerates on the conservation of a 1.4-million hectare vital waterway, though some observers expressed concern as the same three firms recently started building an LNG facility in the area.
Series of institutional investment natural capital funds prepares for launch
The investment arms of a Dutch bank and a Canadian pension fund are preparing a series of large natural capital funds focused on real assets that will launch on a new platform, expected to go live next year.
EU failing to protect remote marine areas, WWF says
EU countries are largely failing to protect their marine areas in the bloc’s most remote regions, with national strategies often misaligned with the European Green Deal goals, a WWF report said on Tuesday.
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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
Going lower – French oil and gas company TotalEnergies will work with China’s Sinopec to develop more low-carbon energies, the two said this week on the sidelines of President Xi Jinping’s state visit to France. Their focus will be biofuels, green hydrogen, CCUS, and more general decarbonisation, they said. Few other details on the collaboration, such as monetary value or nameplate production of new fuels, was given. The French company says that roughly a third of its investment goes to low-carbon energy, which is slightly more than what it spends on new oil and gas projects, and it plans to spend $14-18 bln over the next five years.
EMEA
Next-gen nuclear – The UK will be the first European nation to produce advanced nuclear fuel, in an effort to further insolate Russia from global energy markets. The government has awarded a £196 mln grant to Urenco to build a uranium enrichment plant that is set to begin producing fuel by 2031, which the government hopes will end Russia’s position as the only commercial producer of high-assay low enriched uranium (HALEU). The aim is for the new plant in Cheshire, northern England to provide around 400 new jobs and position the region as a leader in the production of nuclear fuel. HALEU is needed to power most advanced modular nuclear reactors, which is a key element of meeting the national target to quadruple nuclear capacity by 2050. While the government has also announced a competition to access £600 mln in contracts to build the world’s first commercially viable fusion power station prototype.
ASIA PACIFIC
Lower emissions from ethylene – Japan’s Asahi Kasei, Mitsui Chemicals, and Mitsubishi Chemical will start a joint feasibility study on feedstock and fuel conversion to help reduce emissions from ethylene production, they announced Wednesday. The project, to be conducted at the three companies’ ethylene production facilities in western Japan, is expected to increase the speed and effectiveness of the transition towards carbon neutrality for ethylene plants and petrochemical products. The companies said they would study measures such as replacing petroleum-derived resources with biomass feedstock and promoting conversion to low-carbon fuels.
Saving mangroves – Thailand’s Department of Marine and Coastal Resources has partnered with 33 private firms for the generation of carbon credits through mangrove restoration projects. The department last week signed a Memorandum of Understanding (MoU) with the Thailand Mangrove Alliance along with representatives from 33 organisations to protect and conserve mangrove forests in the Southeast Asian country, it announced. Under the agreement, the department will coordinate cooperation of all 33 private sector organisations participating in the mangrove planting, conserving, restoring, and protecting to benefit from carbon credits.
New partnerships – Project developer Green Carbon has teamed up with Iwate Bank to generate nature-based carbon credits under the domestic J-Credit scheme, according to a company statement. Promoting nature-based projects in the Iwate region, such as rice and forestry initiatives, has the potential to create an economic value of roughly 4.7 bln yen ($30.2 mln), according to Green Carbon’s estimate. The developer, which has been working with a number of regional governments and lenders, is actively promoting a rice-focused methodology that cuts emissions by extending the mid-drying period in Asia. At the same time, SBI Sumishin Net Bank recently formed a partnership with SymEnergy, which develops biomass and renewables projects, to create credits in the forestry and agriculture sectors, a company statement showed. The bank and its subsidiary THEMIX Green will work with the new partner to examine biochar and biomass solutions, and further details on specific initiatives will be announced later, the companies said.
Pinpoint – Australia has announced A$566 mln ($371 mln) in funding over a 10-year period to undertake a mapping and data gathering exercise to pinpoint locations of critical minerals needed for the energy transition, Renew Economy reports. The effort will be led by Geosciences Australia, delivering data, maps, and tools to the resources industry to find critical mineral and rare earth deposits. It will also identify locations in offshore areas of the nation for CCS and possible sites for clean hydrogen projects. Australia PM Anthony Albanese said the project would give communities greater certainty with infrastructure planning and environmental assessments, and will support the agricultural sector while creating a ‘sustainable pipeline of projects’.
Green alliance – The Electricity Generating Authority of Thailand (EGAT), Electricite du Laos (EDL), Chiyoda Corporation, and Mitsubishi Thailand have signed a Memorandum of Cooperation (MOC) for collaborating on the utilisation of Renewable Energy Certificates (RECs) in cross-border initiatives. The alliance aims to harness renewable energy from Laos for the production of green hydrogen and ammonia in potential sites across Thailand, while also mitigating carbon emissions. It also seeks to identify business prospects for these sustainable fuels both domestically and internationally. (Solar Quarter)
AMERICAS
RGGI alternative – State Senator Carolyn Comitta (D) introduced Wednesday Senate Bill (SB) 1191, which would establish a state cap-and-trade programme to replace Pennsylvania’s former participation in RGGI. As already announced in March, SB 1191 would create a state-specific carbon cap on Pennsylvania’s power sector, and formally end its participation in the regional RGGI scheme. The new system was introduced alongside the Pennsylvania Reliable Energy Sustainability Standard (PRESS) plan, which sets new standards for clean energy generation. Pennsylvania Republicans were critical of the cap-and-trade proposal when it was unveiled in March, and hold a six-seat majority in the Senate.
California carbon cash – California’s cap-and-trade programme has brought in $28 bln in revenue in the last decade, with $11 bln of that already having been distributed to approximately 578,500 projects, according to a 2024 annual report released Wednesday. According to the report, investments from the programme have resulted in the reduction off roughly 109.2 MtCO2e and the conservation or restoration of around 983,000 acres (397,800 hectares). Activities supported by projects include diverting organic waste from landfills, adopting soil conservation management practices, and providing incentives for zero-emission vehicles and equipment, amongst other practices.
Lululemon allegations – Canada’s Competition Bureau has opened a formal investigation into athleisure giant Lululemon’s environmental claims in its marketing campaigns for possible violations of the Competition Act, reported CBC News. In February, nonprofit Stand.earth asked the agency to investigate the British Columbia-based Lululemon, claiming its advertising campaign went too far in portraying the positive environmental impact of the company’s operations. Under Section 9 of the Competition Act, any six Canadian residents who believe that a company is violating the act can appeal to the bureau commissioner to launch an investigation, according to the national outlet.
VOLUNTARY
INVESTMENT
Another acquisition – Global commodities firm Trafigura announced Wednesday that it reached an agreement with Brookfield Asset Management for the acquisition of the Canadian supply operations of transportation fuel supplier and distributor Greenergy. The agreement represents an expansion on the March deal between Trafigura and Brookfield for Greenergy’s European operations. The sum involved was not disclosed.
AND FINALLY…
In hot water – The world’s oceans have broken temperature records every single day over the past year, driven by climate change, BBC analysis finds. Planet-warming gases are mostly to blame while El Nino conditions have also played a part. Based on data from the EU’s Copernicus Climate Service, the analysis finds that nearly 50 days have smashed existing highs for the time of year by the largest margin in the satellite era. The world’s oceans absorb around a quarter of the CO2 that humans produce, and they also soak up around 90% of the excess heat, meaning they are often considered a way to counter warming temperatures, however over the past year, evidence suggests that oceans have been struggling to cope. From March 2023, the average surface temperature of the global oceans started to rise increasingly above the long-term norm, hitting a new record high in August, and recent months have brought no respite. The sea surface reached a new global average daily high of 21.09C in Feb. and Mar. 2024, according to Copernicus data, leading to mass coral bleaching and significant disturbance for marine life.
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