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TOP STORY

DATA DIVE – Built on solid rock: How Kenya emerged as a global leader for carbon market investment

This is the first story in Carbon Pulse’s newly-launched data journalism offering. Data Dive delves deeper into larger data sets to analyse the figures, identify the trends, and employ helpful visualisations that together deliver compelling and insightful news articles for our subscribers.

VOLUNTARY

ART to begin review of jurisdictional REDD+ carbon standard in August

The Architecture for REDD+ Transactions (ART) will begin a process to review its jurisdictional carbon standard in August, the US-headquartered organisation announced Monday.

VCM Report: Confidence sapped by drop in voluntary carbon credit retirements, thin liquidity

Credit retirements dried up and trading was thin in spot markets amid a lacklustre week in the voluntary carbon market, partly because of public holidays in Europe.

Shareholders at Kasigau firm clash with board over alleged financial mismanagement -media

Shareholders of Kasigau Ranching Company have reportedly clashed with the board of directors over how “millions of shillings” from voluntary carbon credit sales were spent, with the firm in the middle of a financial and management crisis, according to local media.

INTERVIEW: Voluntary carbon credits to improve affordability of home retrofits for UK homeowners

The first scheme allowing UK homeowners to more easily afford energy efficiency retrofits partially aided by the sale of voluntary carbon credits will be piloted among at least 1,000 homes, with potential to engage a huge number of citizens via partnerships with their mortgage providers.

Land grabs for carbon offsetting projects, mostly in Africa, Latin America, threaten global food production -study

Global food production is under threat from the spread of carbon projects that interfere with the livelihoods of small-scale farmers and indigenous peoples worldwide, particularly in sub-Sahara Africa and Latin America, research released Monday has found.

EMEA

FEATURE: After Europe’s exit, remaining Energy Charter Treaty countries look to modernise pact from within

Remaining members of the long-criticised Energy Charter Treaty (ECT) are looking to modernise the international trade agreement to better support climate action, despite the departure of a growing number of European countries citing failed attempts to revamp it.

EU’s truck CO2 emissions law clears final hurdle

EU countries on Monday signed off on a law aiming to cut the CO2 emissions of new heavy-duty vehicles by 90% as of 2040, concluding a legislative journey that began in February last year.

EU-made batteries up to 62% less carbon-intensive than China’s -report

Onshoring the electric vehicle supply chain to Europe would cut the emissions of producing a battery by at least 37% compared to a China-controlled supply chain, with potential CO2 savings as high as 62% if renewable energy is used, according to a study released on Monday.

British investor to acquire UK land under new natural capital strategy

An ESG-focused British investment group has launched a natural capital strategy that will see it acquire land in the UK.

UK public banks finance port redevelopment to boost offshore wind capacity

The state-owned UK Infrastructure Bank and Scottish National Investment Bank are putting £100 million into the redevelopment of a Scottish port to handle offshore wind turbines, helping to scale up wind capacity in the North Sea, they announced on Monday.

Investment in EU cleantech at record high, shows positive signs for competitiveness -report

The EU saw record investments in clean technologies in the first few months of 2024, part of an economic wave that shows signs for optimism in the 27-nation bloc, data showed on Monday.

UK codifies some voluntary carbon credits as taxable under national regulations

The UK will tax sales of some voluntary carbon credits (VCCs) at 0% and others at 20% by bringing them under the umbrella of the country’s ‘value-added tax’ (VAT) on goods and services, though others will remain entirely outside the scope of the scheme.

Euro Markets: EUAs drop to seven-day low as sell-off extends amid bouts of dip-buying

European carbon prices fell to their lowest in seven sessions on Monday, extending the profit-taking sell-off that began on Friday and dropping below a key level amid a pick-up in trading volume, while energy prices also retreated as renewable generation was forecast to rise strongly this week.

AMERICAS

Para public defender targets R$20 mln fine for alleged Brazil REDD+ infractions -media

The public defender of forest-rich Brazilian state Para is targeting fines totalling R$20 million ($3.9 mln) for alleged illegal land-grabbing practices related to multiple REDD+ projects, according to local media reports.

RGGI Market: RGAs flatline as market re-enters programme review purgatory

RGGI allowance (RGA) prices largely plateaued over the past week on lower volumes, with many market participants expecting the futures to hover around their current range in the continued absence of programme review updates, despite a general sense of bullishness.

Texas firm signs 2-Mt annual CO2 offtake for Louisiana CCS hub

A Texas-headquartered pipeline and terminaling energy company signed a revised letter of intent (LOI) with a carbon management firm to jointly develop a carbon capture and storage (CCS) project in Louisiana, committing up to 2 million tonnes of CO2 captured annually from its operations.

ASIA PACIFIC

Japan’s main bourse to add GX-ETS units to carbon marketplace

Japan’s main trading bourse is planning to add emissions reductions issued under the GX League to its carbon trading platform, expanding the scope of units tradable beyond offsets from the national J-Credit programme.

Islamic finance group, Saudi firm sign Maldives blue carbon partnership

An Islamic finance group has teamed up with a Saudi Arabian carbon specialist firm to explore the potential for reducing emissions and earning carbon credits from the vast seagrass meadows and mangrove forests of the Maldives.

South Korea plans blue carbon trading system -minister

The government of South Korea has proposed to launch a trading programme exclusively for blue carbon, following a national strategy aimed at improving the marine sector’s carbon sequestration capacity.

Malaysian carbon exchange to auction country’s first nature-based carbon credits

The Bursa Carbon Exchange (BCX) will soon auction carbon credits generated from a forestry project in the state of Sabah – the first auction of nature-based credits generated within the Malaysian territory, the exchange announced Monday.

INTERNATIONAL

INTERVIEW: Cement industry over-investing in expensive carbon capture

The cement industry is currently over-investing in carbon capture and storage (CCS) and is failing to appreciate just how big the shift to low-carbon concrete will be, according to the CEO of the World Cement Association (WCA).

Cost of compensating coal loss in giant economies higher than current existing climate finance, report finds

Phasing out coal in the world’s two most populous nations with the kind of financial support offered to coal-dependent communities in Europe and Asia would cost 10 times as much and exceed current international climate financing, a study has found.

BIODIVERSITY (FREE TO READ)

Up to €48 bln of EU subsidies supports activities harmful to nature, WWF says

EU countries are directing between €34 billion and €48 bln of European subsidies annually into activities that harm biodiversity, with the majority of them allocated to agriculture, according to a report released on Tuesday.

Over half of UK investors eye natural capital, broad interest in carbon and biodiversity credits, research shows

Half of UK institutional asset owners have already invested in natural capital or will do so within the next 18 months, and are far more interested in developing their own carbon or biodiversity credits than purchasing offsets in the secondary market.

Thousands of wildlife species affected by illegal trafficking worldwide, UNODC says

The UN Office on Drugs and Crime’s (UNODC) has released its third World Wildlife Crime Report, unveiling that, despite some positive progress, wildlife trafficking overall has not been substantially reduced over the last two decades.

140 organisations urge EU countries to stop thwarting nature laws

Over 140 civil society organisations have penned an open letter sounding the alarm over the recent rollback of environmental measures in the EU ahead of the European Parliament’s elections scheduled for next month.

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Job listings this week

• *Asia-Pacific Environmental Markets Correspondent, Carbon Pulse – Asia or Australia/New Zealand
• *Environmental Markets Correspondent, Carbon Pulse – Latin America
• Key Accounts & Business Development Director, BURN Manufacturing – Kenya
• Carbon Market Analyst, FincoEnergies – Amsterdam
• Chief Commercial Officer, Perimeter Forest Limited Partnership – Remote (Canada preferred)
• Senior Project Finance Lead, Earthshot Labs – Remote (North American Time Zones)
• Forest Carbon Specialist, Perimeter Forest Limited Partnership – Remote (Canada preferred)
• Strategic Partnership Manager, Climeworks – Austin
• Carbon Removals Project Officer, City of London – London
• Senior Policy Advisors, Emissions Trading Scheme Priority Projects, Dept. for Energy Security & Net Zero – UK (Various Locations)
• Senior Policy Advisers, Emissions Trading and Greenhouse Gas Removals, Dept. for Energy Security & Net Zero – UK (Various Locations)
• Forest Carbon Verifier, TUV SUD America – Remote
• Cap-and-Invest Group Manager (WMS Band 3), Washington State Department of Ecology – Lacey
• Greenhouse Gas Data Integration and Modeling Scientist (Natural Resource Scientist 3), Washington State Department of Ecology – Lacey

*Premium listings

See all listings or post a job

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CONFERENCES

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

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.

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

and much more! Register here!

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BITE-SIZED UPDATES FROM AROUND THE WORLD

EMEA

EU guidance on renewables – The European Commission issued new technical guidance documents on Monday aimed at helping EU countries implement the bloc’s recently updated Renewable Energy Directive (RED). The documents are being released two years since the Commission put forward its REPowerEU Plan, adopted in the wake of Moscow’s military aggression in Ukraine, which prompted the EU to adopt higher renewables targets to quit Russian fossil fuels. It includes: 1) A Recommendation and guidance on speeding up permitting procedures; 2) Guidance on designating renewables acceleration areas; and 3) A Recommendation and guidance on renewables auction design, which includes the introduction of non-price criteria for wind and solar energy tenders designed to favour European manufacturers over Chinese competitors. “Thanks to the introduction of non-price criteria in auctions, we are giving our industry a chance to prosper at home and compete on a level playing field,” said Maros Sefcovic, EU Commission vice-president in charge of the European Green Deal.

Power to the people – European citizens are calling on Brussels to tax CO2. Today, the European Commission decided to register the initiative, entitled ‘Save the Planet by shifting taxation from labour to greenhouse gas emissions’. The organisers would like the EU to change the carbon pricing system by setting a faster phase-out of free allowances and allowing an uncapped carbon price to achieve emission reduction goals. They also call for the redistribution of a substantial part of carbon pricing revenues to low-income households, strengthening the EU’s Social Climate Fund, and promoting the establishment of a ‘Climate Club’ where participant countries adopt robust carbon pricing measures. The Commission has no legal obligation to follow-up with a legislative proposal, but the organisers have now six months to try and reach 1 mln signatures. Then, the Commission will have to decide whether or not it will take action in response to the request, and will be required to explain its reasoning.

Scathing attack – European Commission President Ursula von der Leyen’s willingness to work with the far right and back off from the green agenda reveals “an attitude of resignation that is enormously pernicious” and “enormously harmful to European interests”, said Teresa Ribera, Spain’s deputy prime minister who wants to be the EU’s next Green Deal chief, in an interview with Politico. The sharp attack on von der Leyen by a prospective commissioner comes as she campaigns for a likely second term after June’s elections. Ribera has decades of policy experience and spent six years managing Spain’s green transformation, so is seen as a qualified successor to run the EU’s Green Deal from Brussels. But her experience and green activism threaten to clash with von der Leyen, who is favoured to retain her role and is leading the campaign for the EPP, which has noticeably cooled on the Green Deal. Polling suggests far-right parties, many with hard-line anti-green policies, will have a larger footprint in the next European Parliament.

Surplus savings – In opposition to the recommendation given by the Climate Change Committee, UK ministers are considering plans to weaken the country’s carbon-cutting targets by allowing the unused portion of the last carbon budget to be carried over to the next period. Doing so would make the next targets easier to meet. The UK has emitted less CO2 in recent years than expected due to sluggish economic growth and Covid-19, but this should be ignored said the CCC and the next set of five-yearly emission targets should be more stringent in order to reach net zero by 2050. Ministers have until the end of this month to decide. Under the 2008 Climate Change Act, ministers are allowed to count the surplus of emissions savings, compared with the budgetary requirement, towards the next carbon budget, making the next budget easier to meet, but also potentially slowing the GHG cut trajectory. (Guardian)

Falling self sufficiency – The UK’s ability to feed itself is set to be reduced by almost a tenth this year as farmers nationwide reel from one of the wettest winters on record, according to the Energy & Climate Intelligence Unit (ECIU). Heavy rain over winter left vast swathes of agricultural land saturated, with many arable farmers unable to plant crops and losing any in the ground. Specifically, the UK could become dependent on foreign imports for about a third of its wheat, while self-sufficiency in oilseed rape is estimate to fall to a historic low of 40% from 75%. While farmers also expect poor harvests of potatoes and onions. Less domestic production and increased imports could hold back the decline in food inflation, which hit a 45-year high of 19.2% in March 2023 but had fallen to 4% in March this year. (Reuters)

Fund shortfall – The German “climate and transformation fund”, which supports initiatives such as the promotion of new heating systems, faces a potential shortfall of around €10 bln for the current year, according to government sources speaking to Der Spiegel. Decreased electricity prices are an emerging problem, it says, because the lower the wholesale price, the more funds the state must provide for feed-in tariffs, which are guaranteed to operators of wind turbines and solar panels. Costs could rise to about €20 bln, the outlet says.

ASIA PACIFIC

The comeback – The world’s biggest nuclear plant may resume generation this year after more than a decade offline, as Japan’s major utility is planning to use the technology to ease power costs, according to BloombergNEF. Tokyo Electric Power (Tepco) will start output from the No. 7 unit at the Kashiwazaki Kariwa facility in October under a base-case scenario, BNEF analysts said in a report published Monday. It will be the first time Tepco operates a nuclear reactor under safety rules implemented after the Fukushima nuclear accident in 2011, which led to the suspension of Japan’s atomic generation.

Make it clear – Japan aims to formulate a national decarbonisation strategy by the end of this year, according to TBS. The new strategy, which indicates the policy direction towards 2040, will replace the country’s basic energy plan and global warming countermeasures, which are revised every three years to achieve the 2050 net zero target, Prime Minister Kishida told a GX (green transformation) executive meeting on Monday. Meanwhile, the government-initiated GX League is expected to announce a set of skill standards that define human resources who can help achieve the country’s climate targets, Nikkei reported. The GX Skills Standard, which clarifies the necessary skills required to promote GX, will be released later this week, the report said. Arrangements for the GX programme, which includes the implementation of a national carbon market, have been endorsed by more than 700 companies across the country.

Raising cash – Indonesian climate tech firm Jejakin has secured new funding worth $2.7 mln, Technode reports. PT ITM Bhinneka Power led the funding round along with Indogen Capital, SMDV, and East Ventures. Jejakin operates a carbon management platform, and will spend the new funds on research and development, tech improvements, market growth, and more.

Second South Africa-focussed helium explorer joins Aussie exchange – A new helium exploration-focussed company has listed on the Australian bourse. D3 Energy is the second Australian Securities Exchange-listed company with a focus on onshore South African helium, after Renergen listed in 2019. It announced ‘world class’ helium concentrations from an initial drill report the same day. As a noble gas helium cannot be manufactured, only explored for, and commands a very high premium owing to its utility across a range of areas, and its relative scarcity. It can be co-located with native hydrogen concentrations, also.  

AMERICAS

NY carbon challenge – The New York State Energy Research and Development Authority (NYSERDA) on Monday announced $10 mln as part of the sixth round of the Commercial and Industrial (C&I) Carbon Challenge, some $5 mln less than the funding that was available for its fifth round. The C&I Carbon Challenge is a programme designed to fund large energy consumers to implement cost-effective, clean energy initiatives to reduce CO2 emissions. Manufacturers, colleges, universities, health care facilities, and office building owners in New York State, as well as decarbonisation solution providers working with them, are some of the entities eligible for funding. A project portfolio must reduce at least 25,000 MtCO2e over its lifetime to be eligible for an award, which ranges from $500,000 to $3.75 mln. The deadline to apply for funding is July 31, 2024, at 1600 EST.

Compensating NYC – Judge Valerie Caproni of the US District Court for the Southern District of New York on Thursday rebuked the oil industry for its fight against New York City’s bid for funds to help tackle climate impacts and has granted the city’s request for compensation, the E&E reported Monday. The Big Apple in 2021 sued Exxon, Shell, BP, and the American Petroleum Associations for alleged violations of the city’s Consumer Protection Law, contending that the oil firms had misled consumers about the role of their products in contributing towards climate change. The firms must now come to an agreement regarding the amount of such fees and costs by June 28, 2024.

Bigger hole – California Governor Gavin Newsom (D) has proposed funding for two climate disclosure bills in the May version of the state’s fiscal year 2024–25 budget, E&E reported Monday. The January version of the proposed budget had paused spending on staff costs to implement two bills – SB 253 and SB 261 – signed last year that require large corporations to disclose GHG emissions and financial risks from climate change. However, the revised May proposal still delays $1 bln in other climate spending with California’s budget shortfall growing $7 bln to $43.6 bln since Newsom’s initial proposal.

Challenged again – Ohio and Kansas were the latest US states to challenge the US EPA’s recent power sector emissions regulations in the US Court of Appeals for the District of Columbia Circuit, E&E reported Monday. Furthermore, Utility Oklahoma Gas & Electric also filed a similar challenge in the same court last week, joining mounting lawsuits against the rules from Republican attorneys general from 25 US states, along with cases from electric utility, mining, and coal industry trade groups.

Rejected – The 5th US Circuit Court of Appeals dismissed a lawsuit filed by the states of Texas, Louisiana, Utah, and West Virginia against the SEC’s proxy vote rule related to climate disclosures on Monday, E&E News reported. The rule would require investment funds to categorise shareholder votes by subject matter, including the disclosure of ESG votes, which the states argued would harm investors because funds would pass on the cost of compliance. The federal appeals court ruled that the states did not have standing to bring their case.

Canadian oil money – In a cross-partisan webinar Monday hosted by the Canada Climate Law Initiative, MPs from Canada’s major political parties – save for the Conservative party, which did not attend – concurred that better mechanisms should be in place to shift Canadian financial institutions from “overexposed investments” in fossil fuels to those that support the goal to net zero. The annual Banking on Climate Chaos report, separately released Monday, found that Canadian banks provided almost US$104 bln in fossil fuel lending. Senator Rosa Galvez, who introduced the Climate-Aligned Finance Act in 2022 (Bill S-243) to align Canadian financial entities with climate commitments, noted that the bill initially struggled to move forward due to a lack of education among Senate officials, but now sees more promise with a present study underway in the Senate Environment Committee to discuss the bill’s policy proposals.

VOLUNTARY

Prospecting for credits – Gold producer Polyus has announced that its subsidiary JSC Polyus Krasnoyarsk has successfully registered a climate project in the territories of the Olimpiada and Blagodatnoye gold deposits in the Krasnoyarsk Territory via the Russian national registry. As part of the project, Polyus Krasnoyarsk built and reconstructed power substations and overhead transmission and transferred consumers in the region away from coal and oil generation to less carbon-intensive supply. The project will reduce emissions by 4.1 MtCO2e out to 2028.

INVESTMENT

eFuels project – eFuels manufacturer Infinium has agreed with SMA Mineral to advance development of its eFuels project at the Mo Industripark in Norway. The facility will use CO2 produced by SMA at its Zero Emission Quick Lime (ZEQL) facility in the industrial park as feedstock for the production of eFuels. Infinium eFuels can be used in existing engines and infrastructure with no modifications. The company operates the world’s first commercial-scale eFuels facility in Texas and has over a dozen projects in development worldwide. SMA’s ZEQL process electrifies lime burning using renewable power and extracts a pure stream of CO2, which subsequently does not require an additional carbon capture unit.

SCIENCE & TECH

AND FINALLY…

Smashed avocado – Climate change threatens to push up the price of avocado, as the world’s best growing regions are expected to see a decline of 14-41% by 2050, according to a report by the NGO Christian Aid. The superfood favourite has already come under fire for its impact on the environment, because it needs a lot of water. But its need for water also makes it more vulnerable to climate change in a hotter, drier, more drought-prone world, it said. Mexico, the world’s biggest avocado producer, could see its potential area shrink by 31% by 2050, even if global average temperatures are limited to 2C, or as much as 43% with a temperature rise of around 5C. Is key growing region of Michoacan faces a potential reduction of 59% by 2050 with under 2C of warming.

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