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CARBON FORWARD TURKIYE
Experts warn proposed limits on Turkish ETS could stunt investment, liquidity
Limits to the scope, supply, and participation in Turkiye’s imminent cap-and-trade scheme could curb state revenue for the green transition, inhibit liquidity, and discourage investment by multilateral development banks (MDBs), according to panellists speaking on Thursday at Carbon Forward Turkiye.
EMEA
Cement giant trials new carbon capture from flue gas technology at UK plant
A large cement maker is trialling new technology developed by a UK-based carbon capture company to capture CO2 from the flue gas at one of its manufacturing plants.
UK heat pump target looks set for boost from voluntary market
The voluntary market is set to boost the UK’s heat pump target with the largest decarbonization homes project in the country under validation by Verra following a public consultation period, data from the standard body registry shows Thursday.
Fossil fuel generation tumbles to less than a quarter of EU electricity demand
Fossil fuels generated less than a quarter of EU electricity for the first month ever in April amid a surge in renewable demand, according to new data.
Euro Markets: EUAs climb above technical resistance and eye a further mark in holiday-thinned market
European carbon prices rose steadily throughout the day on Thursday, breaching a technical level that has acted as a brake on the rally in recent days, with bullish traders seemingly able to push prices higher in a very illiquid market as many European participants enjoyed a public holiday.
AMERICAS
WCI Markets: CCAs edge down as Q2 auction nears, Washington’s scheme remains muted
California Carbon Allowance (CCA) prices showed signs of retreat heading into the Q2 auction despite amassing weekly gains, while Washington Carbon Allowances (WCAs) fetched higher prices on limited market activity.
Contested US CO2 pipeline project signs agreement to market CCS offsets
A CO2 pipeline developer announced an agreement on Thursday to market carbon dioxide removal (CDR) credits from its multi-billion-dollar carbon capture and storage (CCS) infrastructure project that has yet to receive permitting approvals through several US Midwestern states.
ASIA PACIFIC
Gold Standard teams up with industry body to aid carbon project development in Indonesia
Voluntary carbon certification body Gold Standard and the Indonesia Carbon Trade Association (IDCTA) have set up a taskforce to develop carbon market regulation and infrastructure in the Southeast Asian nation, aligned with domestic and international markets, the body announced Wednesday.
SK Market: South Korean low-volume CO2 auction sells out, though market sentiment remains negative
South Korea’s monthly CO2 permit auction on Thursday was oversubscribed, though the auctioned volume remains significantly lower than those offered in the previous events amid sluggish demand in the secondary market.
Japanese offset provider secures $3 mln in funding round
A Japanese offset provider that promotes regional decarbonisation initiatives has secured 480 million yen ($3.08 mln) in a recent funding round, it announced Thursday.
Laos to develop massive carbon project with private partner
Laos has announced plans for a major nature-based solution carbon project spanning 5% of its land mass that could cut CO2 emissions by 1.4 million tonnes per year.
Australia releases strategy that banks on gas beyond net zero target date
Australia, one of the world’s top three LNG exporters, on Thursday released a long-term strategy for natural gas, with plans to rely on the fuel well beyond its mid-century net zero target date.
VOLUNTARY
Microsoft finalises agreement for 3 Mt of removals credits from Brazilian reforestation
The US-based tech giant and a Rio de Janeiro-headquartered carbon offset developer announced Thursday an offtake agreement for 3 million tonnes worth of CO2 removal (CDR) credits from reforestation efforts focusing on Brazil’s Atlantic biome.
Consultancy launches new business line to help companies invest in carbon credits
A global sustainability consultancy has launched a new division focused on helping companies invest in high-quality carbon credits, building on its existing carbon markets strategy, it announced on Thursday.
BIODIVERSITY (FREE TO READ)
Australia ask EU to delay compliance on deforestation law
The Australian government has asked the EU to delay regulation that would prevent commodities linked to deforestation from being imported into the bloc.
English biotechnology catalyst launches with £5 mln
An initiative for spurring investment in biotechnology innovation in the North West of England led by the University of Manchester launched on Thursday, announcing three funding programmes, after receiving £5 million ($6.2 mln) in investment.
UK climate tech secures $15 mln in funding to enhance AI-enabled restoration tool
A British climate tech startup has raised $15.7 million in Series B funding as it seeks to further develop its AI-based platform for ecosystem restoration and expand into new markets, the company announced Wednesday.
INTERVIEW: Chemical firm explores creating Brazilian nature offsets
The agricultural research arm of a Germany-headquartered chemical company is considering a pilot scheme at small-scale soybean farms in Brazil to create credits corporates can use to offset their nature impact.
UK renewables company partners with consultancy on biodiversity net gain
UK-based company Queequeg Renewables is collaborating with Biodiverse Consulting on ensuring five solar projects meet their biodiversity net gain (BNG) requirements, they said on Thursday.
Expert group advises EU Commission to ramp up efforts in shaping a biodiversity credit market
A high-level expert group on sustainable finance (HLEG) has advised the EU Commission to scale up the biodiversity credit market as a means to boost investments towards low and middle-income countries (LMICs).
Biodiversity Pulse: Thursday May 9, 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
EMEA
Eco-friendly retail therapy – Almost three in four (72%) UK adults strive to shop in an environmentally conscious way, with three in 10 saying they “always buy” or “usually buy” the most eco-conscious product available, according to research from The Green Insurer, a UK car insurance broker. Some 41% say they occasionally buy the most eco-conscious product available, while 28% say they do not select products based on how environmentally friendly they are. Higher cost was given as the biggest obstacle to shopping green, cited by three in five of those interviewed, while other reasons given included a lack of choice in green products where people shopped (30%), perceived poor quality of eco-conscious goods (15%); and a lack of knowledge as to where to find environmentally friendly alternatives (10%). Just 6% admitted to not being environmentally conscious shoppers at all.
South African coal closure – South Africa will provide a new timeline for the shutdown of coal-fired power plants next month, in an effort to secure around $2.5 bln in climate finance, Bloomberg reports. The update, first reported by an agency is President Cyril Ramaphosa’s office, follows an announcement earlier this year that South Africa would delay the closures because of record electricity outages. The timeline will be proposed to the World Bank-affiliated Climate Investments Funds in June in order to keep the country on track to receive funding under the $9.3 bln Just Energy Transition Partnership. If the proposal is accepted, South Africa will secure $500 mln worth of 10- to 30-year loans with an interest rate below 1% and a grace period of eight years. The timetable to be proposed to the Climate Investment Funds in June aims to ensure the country remains on track to obtain funding under the so-called Just Energy Transition Partnership — a $9.3-bln pact with some of the world’s richest nations. Under the agreement, first announced in 2021, South Africa will receive the assistance on condition it cuts its dependence on coal, which accounts for four-fifths of the nation’s electricity output.
No dirty sponsors – A British Labour MP has dropped out of the Politico Energy & Climate UK Summit after seeing that it was sponsored by Norwegian oil and gas company Equinor, he announced on X earlier this week. Alex Sobel, MP for Leeds North West, was due to be a speaker at the conference in London on May 16, but said he would not have accepted the invitation if he had known of Equinor’s sponsorship. The move was praised by environmental campaigners in comments to his post.
Final Flourish – Sultan al-Jaber is planning a final flourish as president of the UN COP28 summit by calling the heads of the world’s largest energy and tech companies for climate talks in Abu Dhabi days before COP29 begins in Azerbaijan, reports the Financial Times. Jaber, who is also head of the Abu Dhabi National Oil Company (Adnoc), said he will invite chief executives from Silicon Valley and Big Oil for a “Change Makers Majlis”, or special gathering, at the start of November to discuss artificial intelligence and the energy transition. The Abu Dhabi event will take place immediately before Adipec, an annual conference also held in the capital that is typically attended by most of the chief executives of global oil majors.
ASIA PACIFIC
Hy-five – Australian hydrogen project developer Hysata has raised $111 mln in a Series B investment round, claiming it to be the largest cash raising of its kind in Australian clean tech history. BP Ventures and Templewater led the investment with $10 mln each invested. Hysata is developing a high-efficiency electrolyser that aims to produce green hydrogen at scale with higher energy efficiency and lower costs than alternative technologies. The company welcomed new major strategic financial investors, including POSCO, IMM Investment Hong Kong, Shinhan Financial Group, TelstraSuper, among others. Hysata said it would use the funding to expand production capacity at its manufacturing facility in Wollongong, New South Wales.
We need more time – Taiwan’s carbon levy committee may need two or three additional meetings to finalise the exact rates for the proposed carbon pricing programme, the United Daily News reported, citing remarks by Deputy Minister of Environment Shih Wen-Chen. The government may shorten the notice period and speed up the administrative procedures to make sure the rates can be announced as soon as possible, Shih said, adding that three relevant sub-laws are expected to be legislated around this summer. The environment ministry recently released the 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. The Taiwanese carbon levy scheme will become effective in 2025, according to the government’s current plans.
Solar power – Japan has lost its spot as the third largest solar power generator in 2023 to India, mostly due to a decline in the former’s power demand, a report released by Ember said. Japan’s largest source of clean electricity is solar accounting for about 11%, and while the country’s power sector emissions peaked in 2012, they remained slightly higher in 2023 than in 2000, as in recent years power generation from coal and gas has been replaced by nuclear and solar. Among OECD countries in Asia Pacific, especially in Japan, high energy prices incentivised the adoption of energy saving measures and put pressure on industrial consumption, the report added. Meanwhile, India generated 5.8% of its electricity from solar last year. India is now behind China, the US, and Brazil in terms of increase in solar generation in 2023.
Methane jab – New Zealand public, private finance entity Agrizero has invested NZ$10 mln ($6 mln) in US methane vaccine developer Arkeabio, it announced Thursday. The joint-venture has already invested in New Zealand’s own vaccine research programme and said backing Arkea would increase the chance of delivering the highly sought-after, world-first solution. Arkeabio’s methane vaccine is targeted at ruminant animals, including cows, sheep, and deer, with an initial focus on cattle. Akreabio this week successfully raised $26.5 mln in a Series A financing round.
AMERICAS
EPA rules litigation – Republican attorneys general from 25 states have filed a suit against the US EPA seeking to block recent regulations that require significant reductions in CO2 emissions from existing coal-fired power plants and new natural gas plants, reported Reuters. West Virginia Attorney General Patrick Morrisey – who is helping spearhead one of the lawsuits involved – said the regulations are based on emissions reduction technologies that have not been meaningfully deployed in the real world, exceed the EPA’s authority under the Clean Air Act, and would transform the nation’s energy grid without explicit congressional permission to do so. Electric utility, mining, and coal industry trade groups also filed lawsuits against the rules. Legal experts say the EPA’s assertion that the emissions reductions are feasible if power plants install CCS technologies is likely to be a major factor in litigation.
DOE dollars – The US Department of Energy (DOE) has re-opened $24 mln in funding for CO2 transport networks. This round will support front-end engineering and design (FEED) studies for regional networks to safely transport captured CO2 from industrial and power generation sources to centralised locations. These projects may include pipelines, rail, trucks, barges, and/or ships. Earlier this month, the agency unveiled $500 mln for CCS transport infrastructure projects. The application deadline for the $24 mln is on July 9.
Connecticut curtailing – Connecticut House Bill (HB) 5004, which would declare climate change a state emergency and implement a wide array of emissions reduction measures, was successfully filibustered by Republicans Wednesday, reported CT Insider. The development is being considered a very poor sign for HB 5004’s future, with Representative Christine Palm (D) saying the bill is “probably on life support.” Representatives from the energy industry have expressed concerns around the potential effects of the significant shift to electrification targeted in HB 5004.
What’s next? – Former Governor of the Bank of Canada Mark Carney on Wednesday said that the federal carbon levy had served its purpose, and called on those looking to scrap the tax to propose a credible and predictable alternative, the National Post reported Wednesday. Carney added that a new climate policy should not only be better and more effective than the carbon tax, but also boost the economy, reasoning that the country needed $2 trillion worth of investments in the next 25 years. Conservatives have targeted Carney in recent weeks and referred to him as the next leader of the Liberal Party, with Conservative Leader Pierre Poilievre even nicknaming him “Carbon Tax Carney”.
Blooming Belem – Brazil’s federal government announced that Itaipu Binational will invest R$1.3 bln ($256 mln) to improve the infrastructure of Belem, which will host the UN Climate Conference COP30. The investment by Itaipu, a company jointly operated by Brazil and Paraguay, represents the largest financial outlay it has made outside its area of operation, which includes 399 municipalities in the State of Parana and 35 in the State of Mato Grosso do Sul. The first partnership agreement was signed between Itaipu and the State Department of Public Works on areas including the improvement of road infrastructure to COP30, installing of traffic control, and sewage network. While the second agreement was signed between Itaipu and the City of Belem for the implementation of the Igarape Sao Joaquim Urban Park. Belem’s remote location and limited infrastructure are expected to restrict attendance significantly in 2025, with the federal government reportedly considering hosting part of the conference in bigger cities like Sao Paulo or Rio de Janeiro, though Belem is over three hours by plane from Brazil’s major hubs.
VOLUNTARY
SBTI staff still say no – Research by staff at the Science-based Targets initiative (SBTi) has found that carbon credit offsets are largely ineffective, reports Reuters, just a month after they revolted against a decision by the board of the UN backed non-profit body because it declared there could be grounds for allowing voluntary carbon credits to offset corporate Scope 3 emissions. A preliminary draft report by SBTi staff on the use of offsets states that “higher quality empirical and observational evidence suggests that some or most emission reduction credits are ineffective in delivering emissions reductions,” according to Reuters. In April, a letter from SBTi staff to the non-profit’s board called for chief executive Luiz for Amaral to resign and for the organisation to immediately reverse the trustees’ decision. Since then, the SBTi’s board of trustees has issued a clarification to state it had not yet changed its policy and that any decisions would be “informed by the evidence”. An SBTi spokesperson said its research on carbon offsets has not been completed and that it would be incorrect to state that there are even interim findings at this stage. “Once we have completed the analysis, we will make the results available publicly. Until that point we will not be able to comment on the submitted evidence,” the spokesperson said. The findings are subject to further analysis and review, including from the Scientific Advisory Group, a panel comprising climate scientists from around the world.
SCIENCE & TECH
Radical realism – Hundreds of the world’s leading climate scientists expect global temperatures to rise to at least 2.5C above preindustrial levels this century, leading to catastrophic consequences for humanity from famines to mass migration and conflicts, driven by heatwaves, wildfires, and extreme weather, according to a survey by the Guardian. Almost 80% of the respondents, all from the Intergovernmental Panel on Climate Change (IPCC) foresee at least 2.5C of global warming, while almost half expect at least 3C. A mere 6% thought the internationally agreed 1.5C would be met. Yet many stressed the climate fight must continue, as every fraction of degree avoided would reduce human suffering. Current climate policies mean the world is on track for about 2.7C, yet few IPCC experts expect the world to deliver the huge action required to achieve that, the survey finds. Younger scientists were more pessimistic, with 52% of respondents under 50 expecting a rise of at least 3C, compared with 38% of those over 50. While female scientists were also more downbeat than male scientists, with 49% thinking global temperature would rise at least 3C, compared with 38% of their male counterparts.
AND FINALLY…
Carbon on the menu – The conference and exhibition centre ExCeL London and its caterer Levy UK + Ireland are teaming up with food environmental data firm Foodsteps to help reduce the embodied carbon emissions in the millions of dishes served there every year. Foodsteps helps food businesses measure, report, reduce, and communicate the carbon footprint in their food. The firm will provide ExCeL’s kitchen with UK-specific data on the lifecycle footprint of its produce, enabling it to design lower-carbon recipes. Menus will also be labelled with the carbon content for each dish, using Foodsteps’ A-E ratings system. This is part of ExCeL and Levy’s efforts to reach net zero emissions, including by increasing plant-based options to at least half of every menu, using only recyclable or reusable packaging, and reducing kitchen food waste to under 1%.
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