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TOP STORIES
ANALYSIS – Cookstoves at a crossroads: Methodologies, media, lack of demand in focus at Paris summit
Speakers and attendees at an international clean cooking summit in Paris on Tuesday highlighted the impact of the media on the voluntary carbon cookstoves sector, the optimism and challenges facing the rollout of new methodologies, and urged a focus on generating fresh credit demand to help address the surplus of units in the market.
Donors pledge $2.2 bln in fresh funding to ensure clean cooking for all in Africa
Governments, international organisations, and private sector donors have pledged $2.2 billion in new finance to provide universal clean cooking access across Africa by 2030 at a summit in Paris on Tuesday, with voluntary carbon finance cited as a key means of reaching this target.
AVIATION
Airlines face CORSIA carbon credit supply shortfall by 2030, analysts warn
Demand for carbon credits deemed eligible under the UN’s CORSIA aviation offsetting scheme will exceed supply by the end of the decade in the absence of new offset sources, analysts predict.
EMEA
Annual ETS report highlights growing complexity of EU’s carbon pricing policies
The Emissions Trading Scheme (ETS), widely regarded as the crown jewel of the EU’s climate policy, is becoming more complex as new sectors are added and additional measures are taken to address the scheme’s socio-economic impact, according to a new report released today.
Ghana urges govts to rapidly develop policy frameworks for Article 6
A key figure in the development of Ghana’s Article 6 policy framework has urged other countries to rapidly develop similar policies if they wish to capitalise on the opportunities of sovereign carbon trading.
CF TURKIYE: EU CBAM to drive Turkish decarbonisation, experts say
The EU’s Carbon Border Adjustment Mechanism (CBAM) should drive Turkiye’s industries towards decarbonisation, providing incentives for emission reductions, experts said last week during a panel on the policy’s impact on the MENA region.
Euro Markets: EUAs edge higher as technical buying takes prices back into emerging range
European carbon prices rallied modestly on Tuesday after dropping by 6.2% in the previous two sessions, after the daily auction triggered technical buying that drove the market up by €2.00 in two hours, before buyers eased off and the market appeared to settle into its recent range.
Business groups team up to develop CO2 pricing for building sector
Large industry associations have announced a new taskforce to develop a comprehensive carbon pricing strategy for the real estate sector, along a whole value chain perspective.
Public procurement a missed opportunity for EU climate action, report says
The EU has missed an opportunity to reduce carbon emissions and bolster domestic industries in Europe by failing to pursue a plan for green public procurement, according to a new report released on Wednesday.
UK energy company to build world’s first wood-powered cargo ship
A British energy firm with ambitions to become a global player in bioenergy with carbon capture and storage (BECCS) has drawn up plans for the world’s first wood-powered cargo ship.
AMERICAS
PREVIEW: ARB workshop uncertainty to keep a lid on WCI Q2 auction settlement
The California-Quebec current vintage carbon auction on Wednesday is expected to clear in line with or at a slight discount to front month California Carbon Allowance (CCA) prices, traders said, with uncertainty from the ARB’s cap-and-trade rulemaking workshop factoring into participants’ views.
Over half of ARB-approved US forest offset land at moderate to very high risk from wildfires -report
Nearly 3 million acres (1.2 mln hectares) of land involved in the California ARB forest carbon offset programme lies in areas at moderate to very high risk from wildfires, potentially endangering millions of tonnes of stored CO2, according to a report published Monday.
Advisors call on Oregon to clarify offset use, credit eligibility in climate protection scheme
Oregon’s Department of Environmental Quality (DEQ) must address existing ambiguity surrounding compliance instruments under the Climate Protection Program (CPP), including the use of offset projects, as well as a new emissions cap, an advisory committee told the agency Tuesday.
Brazilian startup issues $40-mln worth of carbon tokens, claims 1.6 Mt emissions reduction
A Brazilian fintech startup has announced the issuance of 1.6 million carbon tokens, each representing one tonne of CO2 and encompassing water, soil, and biodiversity co-benefits.
ASIA PACIFIC
New Zealand consultation opens for weaker ETS settings, lower carbon price
New Zealand on Wednesday released its annual consultation on five-yearly settings for its emissions trading scheme, adding options that would lower the NZU price floor at auctions and allow for a ballooned Cost Containment Reserve (CCR).
Aussie budget delivers ACCU cash, huge tax incentives for minerals, hydrogen
Australia’s budget will see another A$48 million ($31.7 mln) for reforms to the Australian Carbon Credit Unit (ACCU) scheme, in addition to billions of dollars in tax credits for critical minerals and green hydrogen development and another A$41 mln for a nature repair market, Treasurer Jim Chalmers announced on Tuesday.
Japan to draw up 2040 decarbonisation strategy, strengthen legal foundation of domestic ETS
Japan has launched a process to formulate a new national decarbonisation strategy towards 2040, which it intends will give more clarity to the trajectory of the country’s emissions trading system.
Laos consults on upcoming Article 6 carbon laws
After issuing its draft decree on its nascent Article 6-linked carbon market last month, Laos is now holding a consultation on the subject for major stakeholders.
China publishes basic rules for domestic power markets
Chinese regulators have released a set of basic rules for the operations of the domestic power markets, as the country continues to push for a transition towards market-based electricity pricing while supporting the development of renewable energy, a move observers say is crucial for the effectiveness of the national ETS.
Malaysian industries seen aware of, but not ready for the EU’s CBAM
Industries across Asia, especially in Malaysia, are aware of the EU’s Carbon Border Adjustment Mechanism (CBAM) but are not yet “ready enough” to face it, a project developer told a conference Tuesday.
Financial services companies pilot tokenised carbon credit transactions in Hong Kong
A group of financial service companies has successfully completed a proof-of-concept (POC) pilot in Hong Kong that explored the operational and risk management benefits of tokenised deposits to facilitate the settlement of tokenised carbon credit transactions.
VOLUNTARY
Cash flow squeeze clips major voluntary carbon project developer for second time
A major voluntary carbon project developer and trader was forced to temporarily defer wages amid another cash flow squeeze, it told Carbon Pulse Tuesday, highlighting the current dire market situation.
Ratings agency defends against detractors, arguing they’re a sign of a maturing market
Carbon ratings firms are a sign that the voluntary market is maturing and can help bring price clarity to buyers, a representative of one agency told a conference Tuesday in defence against critics.
Xpansiv looks to connect to the world via open access to market services
Xpansiv is expanding its horizons with a new service to provide open access to the company’s automated settlement and portfolio management, the company announced Tuesday.
AI cuts carbon capture and storage design time from 100 days to just one
Artificial intelligence (AI) has been used to cut the design time for carbon capture and storage (CCS) from a typical length of 100 days to just one day.
Czech project developer to generate up to 50,000 voluntary carbon credits from Chilean land
A Czech project developer has signed contracts with Chilean farmers to develop tens of thousands of carbon credits from 5,000 hectares of land in 2025 via regenerative agriculture practices.
Enhanced risk management solutions with carbon credit insurance cover unveiled in new ClearBlue-Kita partnership
ClearBlue Markets and Kita have formed a partnership aimed at enhancing the voluntary carbon market (VCM) by offering improved data accuracy, risk mitigation, and transparency in credit transactions.
INTERNATIONAL
COP29 host expects parties to find “tangible” Article 6 outcome in Baku
Ensuring a clear outcome on Article 6 will be a priority for Azerbaijan at the UN COP29 summit in November, the country’s President-Designate told an international event in Paris on Tuesday.
BIODIVERSITY (FREE TO READ)
BRIEFING: UK launches roadmap for high-integrity marine natural capital markets
The UK has launched a roadmap for high-integrity marine natural capital markets in order to safeguard its coastal environment and ensure investor confidence, which will be supported by the rollout of country-wide codes for coastal ecosystem services.
Ecuador’s debt-for-nature swap still missing key policies, one year on, says NGO
One year after Ecuador’s debt-for-nature swap — the world’s largest to date — there is still no evidence that the country has operating procedures in place to allocate funds or guide investment, according to a report released by a Latin American debt justice NGO this month.
Indonesian financier invests in cocoa butter alternative to protect forests
Indonesian venture builder Terratai has invested in Dutch cosmetics company Forestwise to help establish a market for a more sustainable alternative to cocoa butter, in a bid to tackle deforestation.
Nature Tech Alliance launches to help firms reduce their impact on biodiversity
A group of tech companies on Tuesday announced the launch of the Nature Tech Alliance, a global partnership to help businesses understand, manage, and reduce their impact on nature.
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.
Ireland leads group of EU countries in pushing to save contentious nature law
Ireland is guiding a group of EU member states seeking to rescue a proposed law to restore at least 20% of the bloc’s land and sea areas by 2030, following a year of back and forth between co-legislators.
French company edges closer to issuing water credits
A French environmental company has moved one step closer to issuing water credits, as its methodology has been validated by an independent verification body following the launch of a pilot in Mexico.
Biodiversity Pulse: Tuesday May 14, 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 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. To express an interest in speaking or sponsoring, please email michelle@carbon-forward.com
FREE PASSES: We have allocated a limited number of free passes for Carbon Forward North America to attendees representing medium and large companies that currently buy and retire voluntary carbon credits or are looking to do so in the future. If your organisation is an end user of carbon offsets or wants to learn more about offsetting, and is not from the energy or financial sectors, contact us to apply for a free pass. Maximum one per company.
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
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BITE-SIZED UPDATES FROM AROUND THE WORLD
INTERNATIONAL
Auto industry’s climate lobbying exposed – A new analysis by watchdog InfluenceMap, published on May 14, says lobbying by the world’s largest automakers is putting global climate targets at risk and threatening the transition to electric vehicles. All 15 automakers examined in the study, except Tesla, have actively advocated against at least one policy promoting electric vehicles, InfluenceMap says. Only three automakers – Tesla, Mercedes Benz, and BMW – are forecast to produce enough EVs by 2030 to meet UN climate goals. Overall, Japanese automakers are the least prepared for the EV transition and are engaging the hardest against it, with Toyota ranking lowest in the analysis.
EMEA
Streamlined shipping – A digitised port call process launched in the Port of Gothenburg expects to reduce CO2 emissions in the port area by 6,000 tonnes a year, thanks to streamlining of the approximate 6,000 ship calls that it handles annually. As the largest port in Scandinavia, large amounts of information need to be communicated by up to 120 different actors to enable these thousands of ship calls to operate seamlessly, and by using digital services such as ”Just-In-Time” arrivals for vessels, the sailing into and out of the port area can become more eco-friendly and cost effective.
New nuclear – Slovakia is considering building another nuclear power unit with capacity of up to 1.2 GW, and may reach a decision on Wednesday, said Prime Minister Robert Fico on Monday. The country has long been a supporter of nuclear and hydro energy, with partially state-owned utility Slovenske Elektrarne last year completing the 472 MW Unit 3 at the Mochovce plant and now completing another at the same site. Slovakia, through Slovenske Elektrarne, currently operates two nuclear units with 505 MW capacity each at Jaslovske Bohunice, in addition to the Mochovce plant. (Reuters)
ASIA PACIFIC
Approved – Andrew Forrest’s Squadron Energy has won approval from the New South Wales Independent Planning Commission for a ‘hydrogen-ready’ gas power station that will back up its wind and solar project plans, Renew Economy reports. The 64 MW Dubbo Firming Power Station includes potential for a 20 MW electrolyser, which will help firm the company’s 404 MW Uungala wind project, under construction, and the proposed 700 MW Spicers Creek Wind Farm, in the Central West Orana Renewable Energy Zone. The gas turbines are capable of running on a 25% hydrogen blend.
Possible delay – Taiwan’s carbon levy legislation could be significantly delayed, United Daily News reported. The carbon fee rates could be announced in December at the latest and officially released in March next year, given the three-month notice period. That means the time for Taiwanese emitters to pay their first carbon fee may be postponed to 2026, one year later than originally planned, according to the report. The formulation of carbon levy rates is a task that must be completed by the end of this year, and relevant legal work will be accelerated, the environment ministry said in a release.
Make it easier – Tokyo-based e-dash Inc., which operates a service platform for visualising and reducing CO2 emissions, has formed a business partnership with the Tokyo Chamber of Commerce and Industry (TCCI) to support the decarbonisation efforts of TCCI member companies, it announced Tuesday. In a survey conducted by TCCI, over 60% of the small and medium-sized enterprises in the Japanese capital were not taking any steps to cut emissions, with some of them (28.9%) simply not knowing where to start their decarbonisation work.
Spin it off – Anglo American, battling a takeover bid from the world’s largest miner BHP, will sell off its coking coal assets it said Tuesday. The company, targeted by BHP for its copper position, refused a second, improved all-scrip bid Monday and said Tuesday it would sell of its Queensland, Australia, coking coal assets in a move to simplify its portfolio.BHP has coking coal assets in the same area, and would be seen as a natural owner. The miner, who is clear on the need for more copper to underpin the energy transition, has also said coking coal will continue to be a useful asset given its centrality to the steelmaking process.
More moves on cross-border CCS hub – Two Japanese energy giants Inpex and Jera have signed on for a joint study on a carbon capture and storage (CCS) value chain stretching from Japan to Australia. Inpex, which operates a large LNG project in Australia, also has a permit offshore for sequestration of greenhouse gas, awarded in mid-2023 as part of Australia’s second GHG acreage round. It may be used as part of the Northern Territory’s proposed CCS Hub. Inpex has said it has the potential to become one of the largest CCS projects in the world.
AMERICAS
VA budget signed – Virginia Governor Glenn Youngkin (R) signed on Monday a compromised budget deal reached earlier with Democrats in the state legislature, reported the Virginia Mercury. Reached last week, the compromise excluded language for the state to rejoin RGGI, the regional power sector cap-and-trade scheme that the state exited at the end of 2023. The local outlet reported that Youngkin threatened to veto the budget deal if it entailed re-entering RGGI. Some environmental groups reportedly criticised the exclusion of RGGI-related provisions in the final budget.
CCS correspondence – A coalition of environmental and taxpayer watchdog groups sent a letter to Internal Revenue Service (IRS) Commissioner Daniel Werfel last week urging him to boost oversight of the 45Q tax credit, which is popular with the carbon capture industry. Specifically, the group called on the IRS to require independent third-party verification of the amount of CO2 captured and stored, audit the data submitted by companies and make it publicly available, and mandate that companies keep relevant records as long as they claim credits, so that the agency can draw back credits in case of leakage. The group argued that most of the tax breaks towards CCS so far have been wasted or otherwise ineffective.
Truck troubles – A group of Republican state attorneys general are suing the US EPA and the state of California over emissions limits regulations for trucks, reported the AP. Nebraska Attorney General Mike Hilgers is leading the group who filed a petition with the US Court of Appeals for the District of Columbia Circuit to overturn recent EPA rules that sets emissions standards for passenger cars, light-duty trucks, and medium-duty vehicles effective as of model year 2027. The group claims the regulations would hurt the logistics and trucking industries, raise prices for customers, and impact jobs. A separate group also filed a lawsuit on Monday against California’s phased-in ban on big rigs and buses that run on diesel from being sold in California starting in 2036. In March, the same court upheld the Golden State’s longstanding authority to set its own standards that are stricter than those at the federal level.
RINs requirements upheld – The US Court of Appeals for the District of Columbia Circuit ruled Tuesday that the US EPA acted within its authority in setting, mostly retroactively, minimum biofuel-blending volume requirements through the Renewable Fuel Standard (RFS) for years 2020-22. The Court denied requests by the petroleum refiners and the American Petroleum Institute, as well as cellulosic biofuel producers, to revisit the regulations EPA set in July 2022. The agency denied oil refiners waivers to be exempt from the requirements but said it would allow extra time for small refiners to meet their 2020 blending obligations. Oil refiners argued that the standards were too high, while cellulosic biofuel producers said they were too low.
Biochar protocol, adopted – US-based registry Climate Action Reserve (CAR) on Tuesday announced that it adopted the US and Canada Biochar Protocol in March. The methodology seeks to advance the production and use of biochar, and also support credit generation from nature-based climate solutions. Eligible feedstocks under the protocol include agricultural waste digestate from biodigesters, animal manure, aquaculture by-products, food processing residues, forestry by-products and residues, biosolids, urban waste, as well as perennial, non-woody biomass grown for the purpose of producing biochar.
VOLUNTARY
Chimps & cars – DGB Group’s agreement with an unnamed car manufacturer for the exclusive option to purchase carbon credits from its Bulindi Chimpanzee Habitat Restoration Project (GS 12226) has been updated, confirming the purchase volume of 240,000 credits. Located in western Uganda, the project supports conservation in the Hoima and Masindi districts, which are home to over 300 wild chimpanzees living in diminishing forest fragments on agricultural land. Community initiatives include providing energy-saving stoves, seedlings for woodlots, forest enrichment planting, and training in conservation farming. The project aims to plant 4.5 million trees over the next six years and restore 8,290 hectares of degraded land. It’s projected to generate approximately 4.3 mln verified carbon credits over its 41-year lifespan, resulting in anticipated gross revenues of €63.4 mln. The agreement between DGB and client was signed on Oct. 30, 2023.
SCIENCE & TECH
”Unprecedented increase” – The rate of CO2 increase is currently 10 times faster than at any point in the past 50,000 years, according to researchers at Oregon State University and the University of St Andrews who carried out chemical analysis of ancient Antarctic ice. The findings, published in the Proceedings of the National Academy of Sciences (PNAS), provide important understanding of abrupt climate change periods in Earth’s past and offer insight into the potential impacts of climate change. The scientists found the rate of CO2 increase ”unprecedented” and driven by anthropogenic emissions. During the largest of the natural CO2 rises, CO2 increased by about 14 parts per million in 55 years, and the jumps occurred about once every 7,000 years or so – compared to current rates, when that magnitude of increase takes only five to six years, the scientists found. (the Independent)
AND FINALLY…
All dogs go to heaven – Activists from Extinction Rebellion interrupted a dog show in New York City on May 11, with the following slogan: ‘No dogs on a dead planet’. In a statement, the activists said they weren’t protesting against any particular individual or organisation but only wanted to raise awareness about the perils of climate change for life on earth. “Climate catastrophe threatens everything we love on this planet, including dogs,” XR said. Heat waves can be devastating and painful for dogs, the group explained, saying they can cause “burnt paw pads, heat exhaustion, heat stroke — and death.”
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