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TOP STORY
LEAK: EIB’s draft ‘strategic roadmap’ opens door to nuclear energy financing
The European Investment Bank (EIB), one of the world’s largest multilateral lenders, is considering opening its capital to investments in nuclear power, marking a departure from the EU bank’s traditional lending policy on clean energy, which has so far focused mostly on renewables.
ASIA PACIFIC
India mulls adding cookstoves to list of eligible Article 6.2 activities
The Indian government is considering the inclusion of solar cookstoves as part of a list of activities eligible to generate carbon credits that can be sold abroad under Article 6.2 of the Paris Agreement, an official told Carbon Pulse on the sidelines of a conference on Thursday.
Australian carbon project developer partners with investment firm to finance environmental plantings work
An Australian carbon project developer has acquired land funded by an investment firm in exchange for the proceeds of Australian Carbon Credit Units (ACCUs) generated and sold from the property, they announced Thursday.
Australia Market Roundup: Govt, Greens strike to deal to pass vehicle emissions standards, ACCU issuance rises
The federal government and the Greens have agreed to pass legislation on New Vehicle Efficiency Standards (NVES) and oil and gas tax changes in exchange for the government dropping an amendment that would allow oil and gas projects be exempt from federal environmental assessments.
Vietnam state oil company plans CCS carbon credits
Vietnam’s state oiler PetroVietnam is looking to earn carbon credits for carbon capture and storage (CCS) work that would largely utilise its existing assets in addition to its tree-planting efforts of recent years, according to the government.
China needs clarity on carbon asset attributes to support carbon finance -report
Financial institutions in China need more clarity around the legal and financial attributes of carbon assets to unlock the potential of carbon finance in the country, according to researchers.
Australian carbon industry veteran appointed chair of GreenCollar
Australia’s largest carbon project developer has appointed a company board member and industry stalwart as its chair, it announced Friday.
Malaysia sets legislation table date for CCS
Malaysia has put a firm date on getting more carbon capture and storage (CCS) legislation into parliament, progressing the practice and giving more investment certainty to an increasingly long line of international oil companies willing to partner with state oiler Petronas to store millions of tonnes of CO2 in offshore spaces.
Cambodia launches APAC-focused initiative to promote carbon policy collaboration
Cambodia’s environment ministry has teamed up with a Korean non-profit to launch an APAC-focused initiative, in a bid to encourage collaboration on emissions rights across the region.
AMERICAS
LCFS Market: Credit prices plunge lower as renewable feedstock tariff hopes sink, stakeholders renew calls for programme stringency
California Low Carbon Fuel Standard (LCFS) prices plunged to new all-time lows this week as federal tariff announcements that excluded renewable diesel (RD) feedstocks further pressured an already flooded credit market, market participants said, while the ARB fields further calls for higher programme stringency.
WCI Markets: CCAs trade higher after rare auction delay, Washington uncertainty prolongs
California Carbon Allowance (CCA) prices have reversed their pre-auction slide after the ARB delayed the Q2 sale due to technical difficulties, while Washington Carbon Allowances (WCAs) falter through meagre activity.
ARB under fire for rejecting EJAC proposals in proposed cap and trade programme updates
California regulator ARB at a meeting on Thursday dismissed the state’s Environmental Justice Advisory Committee (EJAC) recommendations to establish no-trade zones, as well as eliminate offsets and free allowances in cap-and-trade rulemaking amendments.
Alberta TIER programme tightens emissions benchmarks for second time this year
The Alberta Technology and Emission Reduction (TIER) programme on Tuesday published a second round of updated benchmarks this year, tightening allowable emissions levels and raising compliance obligations through to 2030 across multiple sectors.
EMEA
FEATURE: Denmark’s move to set up carbon removals fund creates emissions accounting headache for Brussels
Denmark’s world-first carbon removals fund could emerge as a model for other countries but also highlights ambiguities around how the voluntary carbon market (VCM) will coexist with national climate targets, particularly in the EU context.
INTERVIEW: UK public bank looks to invest in green sectors deemed too risky for private finance
The state-owned UK Infrastructure Bank is looking to put money where private investors are not yet willing to go, in an effort to solve the problems standing in the way of reaching net zero emissions by 2050.
Austria to replace national CO2 pricing scheme with EU ETS2
The Austrian Parliament voted in favour of replacing its national carbon pricing scheme for fossil fuels – covering the heating and transport sector – with the EU’s upcoming ETS2, which is due to come into effect as of 2027.
EU countries cut gas under REPowerEU, but risk missing new target -analysts
EU gas reductions are on track with objectives, two years into the bloc’s plan to end reliance on Russian fossil fuels before 2030, although the new target for 2024-25 leaves room for a step backwards, analysts said.
Euro Markets: Carbon prices move back into recent range amid steady buying, stronger gas
EU carbon allowance prices rallied steadily throughout much of the day on Thursday, shrugging off a late dip, as the Dec-24 EUA contract climbed back into its recent trading range, boosted by a recovery in natural gas prices amid forecasts for lower renewables output.
Andalusian startup to evaluate the carbon sink potential of olive trees -media
A startup in the autonomous Spanish region of Andalusia has obtained EU funding to assess the carbon sequestration potential of traditional olive groves in hopes of engaging carbon markets, as interest grows in carbon farming, according to Spanish media.
INTERNATIONAL
Carbon pricing proves its worth in reducing emissions, global meta-study shows
Carbon pricing schemes, such as taxes and cap-and-trade systems, are significantly reducing global greenhouse gas emissions, a new meta-study has found, though the results vary widely depending on the policy’s design and implementation.
Slow burn development of low-carbon tech leaves oil demand ramping higher until 2030, finds report
Low-carbon technologies are developing too slowly to curtail global oil demand growth in the next five to seven years, according to research, a trend that may hamper progress towards meeting international emissions targets.
Host countries must be prepared for imminent demand for Article 6 credits once implemented -expert
Demand for Article 6 credits from developed countries will arise sooner rather than later, however host countries must put necessary policies in place, a conference heard this week.
VOLUNTARY
Solar-powered humanitarian project in Uganda to yield carbon credits
A Kenya- and US-based social impact enterprise will obtain carbon credits through a programme to provide subsidised solar home systems to refugee communities in Uganda.
Voluntary carbon credit management firm, Brazilian investor partner to scale offset projects
A voluntary carbon market management firm and a Brazilian investment company will collaborate to bolster opportunities for offset projects in Brazil.
BIODIVERSITY (FREE TO READ)
Trading platform lists 10,000 Terrasos biodiversity credits
A US-based environmental trading platform has announced the listing of 10,000 biodiversity credits generated by Colombian developer Terrasos.
Governance gaps, market uncertainty to hinder BNG effectiveness, report says
Shortfalls in the biodiversity net gain (BNG) policy are slated to undermine its long-term effectiveness, with uncertainty about the scheme’s ability to meet demand and governance gaps among the main concerns, the UK’s independent public spending watchdog has said.
Biodiversity Pulse: Thursday May 16, 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 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
EMEA
Billions for grids – Germany must invest €110 bln in expanding its electricity distribution network over the next 10 years, the federal network agency (BNetzA) told local news agency dpa. Part of the cost to install new power lines will be paid by electricity consumers through so-called grid fees, while between 2034-’45, grid operators estimate that further expansion would cost around €90 bln. Further, additional investments would be needed for replacing existing power lines, amounting to €10 bln by 2033 and a further €20 bln by 2045, the agency said. A modernised and more capable power grid is essential for Germany’s energy transition, but expansion has been falling behind schedule for several years now. (Clean Energy Wire)
Baltic consortium – The EU Commission today granted the PCI status to a carbon capture and transportation project in Lithuania and Latvia, meaning it is recognised as a key cross-border infrastructure project, which will significantly contribute to the implementation of the EU energy policy and climate goals. It will be developed by the CCS Baltic Consortium, consisting of Akmenes cementas AB, KN Energies, AB, Larvik Shipping AS, Mitsui O.S.K. Lines, and SCHWENK Latvija SIA.
Smartening up – The UK still has a long way to go to achieving 100% smart meter uptake in domestic properties, with 36% of British homes still without electricity smart meters, according to a new report by LCP Delta. The UK has pursued a retailer-led approach to smart meter rollout, versus other European markets that have largely adopted a mandated approach, and have therefore completed their smart meter rollouts or are moving at pace, such as Spain, Italy, and France. Germany is behind the rest of Europe due to a delayed rollout, with mandates for businesses and larger homes now in place. In the UK, customer engagement is strong on smart meters but not overall rollout, underscoring the heightened importance of customer engagement to boost uptake. The country has so far installed 18.8 mln smart meters in domestic homes, compared to 37.9 mln in France, and 27.9 mln in Spain.
Enabling clean power – The UK needs to focus on building the enablers and incentives to achieve 100% clean energy, rather than focusing on whether to aim for 2030 or 2035, speakers said at the Politico Energy & Climate Summit in London on Thursday. The Labour Party, which is expected to win the next general election, is aiming for 2030, although analysts say 2035 is more achievable (but still difficult). This would require roughly a quadrupling of clean energy and doubling of grid capacity. It also calls for reforms to speed up planning permissions, given that it can take a decade to build a transmission line or offshore wind farm, speakers said.
ASIA PACIFIC
Don’t have a cow – Australian burger chain Grill’d has abandoned its low-methane beef option from most of its stores across the country, due to lack of interest, Beef Central reports. Customers were asked to pay an extra A$1 for a burger patty carrying a low methane claim, based on it being sourced from cattle that were fed Asparagopsis seaweed developed by Sea Forest, and other food supplements that reduce methane emissions. The company will now supply the option at just seven ‘environmentally aware’ stores, however will stop asking customers to pay extra for it.
Count me in – Japan has joined an international initiative proposed by South Korea, which seeks to speed up the transition to clean energy sources, according to Yonhap. During an energy ministerial meeting held in Indonesia this week, South Korea proposed the launch of a workstream for the Carbon-Free Energy Initiative (CFE), which focuses on achieving the carbon neutrality target by harnessing carbon-free energy sources. Several other countries, including France and Saudi Arabia, have also expressed support for the initiative, the report said.
Raising concerns – The New Zealand Institute of Forestry has expressed “deep apprehension” over potential redundancies of scientists at the country’s leading forestry research institute, Scion, it said in a press statement Thursday. It said Scion was renowned for its pioneering research in forestry, plays a pivotal role in driving advancements in sustainable forest management, biosecurity, and wood product innovation. The loss of scientists due to lack of funding would undermine New Zealand’s ability to address pressing environmental challenges, it said, calling for a collaborative effort among government, industry, and academia to preserve Scion’s research capacity.
AMERICAS
ETS delay disadvantage – Brazilian Minister of the Environment and Climate Change Marina Silva warned Thursday that the delay of national ETS legislation is already hurting the country’s exports, considering the EU’s carbon border adjustment mechanism (CBAM) and other similar proposals popping up worldwide. At the same event – held by the Superior Court of Justice (STJ) in Brasilia – multiple panellists, including STJ Minister Ricardo Villas Boas Cueva and Chief Legal Officer at the National Bank for Social and Economic Development (BNDES) Walter Baere – emphasised the role the ETS could play in helping the country adapt to climate change, both economically and environmentally. Some participants, including Attorney General Jorge Messias, also emphasised the social benefits of a national ETS. A recent paper from LSEG Data & Analytics found that the most current ETS proposal, which expanded the role of the voluntary carbon market, and Brazil’s extensive oil production cloud its wider climate ambitions.
Anti-flaring funds – The US DOE’s Office of Fossil Energy and Management (FECM) announced Thursday that four research projects had been awarded $32 mln to advance technologies for reducing natural gas flaring at oil production sites, which is a significant source of GHG emissions. The projects intend to allow for that gas to be turned into products, rather than flared. In Dec. 2023, the US EPA unveiled standards to reduce methane emissions from the oil and gas industry that include a phased-in requirement to eliminate routine flaring on natural gas that is produced by new oil wells.
Climate lawsuit blocker – Pennsylvania State Senator Gene Yaw (R) introduced legislation that would bar local governments that pursue litigation against oil companies from receiving a share of the state’s oil revenues, reported E&E News. In March, Bucks County became the first locale in the state to sue the fossil fuel industry, claiming companies misled the public about regarding the industry’s role in climate change. More than two dozen local governments across the country are launching similar legal fights, the outlet reported. Yaw chairs the Pennsylvania Senate Environmental Resources & Energy Committee. In April, the House GOP in the state unveiled their counterproposal to Governor Josh Shapiro’s (D) energy strategy that entails a power sector cap-and-trade system to replace Pennsylvania’s former participation in RGGI.
Challenge extension – A legal challenge to California’s climate disclosure laws enacted last year is likely to drag through the summer after both parties proposed a new briefing schedule for a Sep. 11 date in federal court rather than the original June 24. The challenge, filed in January by the US Chamber of Commerce, the American Farm Bureau, and various California groups, seeks to overturn the laws. In April, documents revealed that California ARB suggested cutting Scope 3 emission requirements from SB 253, which mandates companies doing business in the Golden State with annual revenues of over $1 bln to disclose their full range of emissions.
CA offset bill – SB 1036, which targets oversight over the purchase and sale of carbon offsets in California, passed its final Senate committee on Thursday. The Senate Appropriations Committee passed the bill on a 5-2 vote as amended during the suspense file hearing. The bill now heads to the floor of the 40-member Senate, and must move through the Assembly policy committee(s) and an appropriation committee before it may reach the Assembly Floor to then potentially land on Governor Gavin Newsom’s (D) desk to become law.
Louisiana CCS law – One of many CCS bills in Louisiana state legislature passed the Senate Natural Resources Committee on Thursday, and now awaits review by the Legislative Bureau before a vote on final passage. HB 516 stipulates emergency response plans, community notification systems, maps and locations of CCS facilities, and groundwater monitoring, and was subject to a number of amendments during the legislative session, including administrative provisions and monitoring required of operators.
BC wildfire battle funding – Later this month, non-profit the BC Centre for Innovation and Clean Energy (CICE) will launch a call for innovation focused on wildfire technologies, it announced Thursday. Up to C$3 mln in non-dilutive investment will be awarded to developers of commercial technologies related to wildfire prevention, mitigation, and adaptation. Earlier this year, academics and environmental non-profits argued the Canadian government was under-reporting forest-related emissions, by excluding emissions released by wildfires, amongst other reasons.
VOLUNTARY
SBTi for chemicals – The Science Based Targets initiative (SBTi) put out a call for experts this week to help develop guidance for the chemicals sector to cut emissions in line with a 1.5C limit. The chemicals sector is the largest industrial energy consumer and third-highest CO2 emission worldwide, the SBTi noted. It is also feeling the impacts of climate change, such as higher risk of fire, floods, and accelerated corrosion of metal structures. The SBTi is looking for experts from inside and outside the chemicals industry to take part in the public consultation for the guidance, which started on Wednesday and closes on July 15.
My goodness, my carbon-free Guinness – Diageo intends to invest over €100 mln to decarbonise its landmark Guinness brewery, the St. James’ Gate site in Dublin, which has been running for 264 years. The alcoholic beverage company aims to decarbonise St. James’ Gate and make it one of the most efficient breweries in the world by 2030. It plans to entirely phase out the use of fossil fuels in direct brewing operations and reduce Scope 1 and 2 GHG emissions from the site by more than 90%, in line with the Science Based Targets initiative’s guidance on net zero, Diageo said. By 2030, the Guinness site will run on renewable energy, grid-supplied heat pump power, and biogas generated from a new water recovery facility.
More earnings – Offset developer Zefiro Methane on Thursday reported earning for the three months ended Mar. 31, 2024. The company said it generated record consolidated revenues of $8.5 mln, a 10% increase from the previous quarter, resulting in a gross profit of $2.7 mln and an approximate 31% gross profit margin. Zefiro reported a net loss of $950,000 for the three months. For the nine months ended Mar. 31, its net loss was nearly $4 mln, which translated to a 6-cent loss per share.
INVESTMENT
Due diligence – German tech startup Recarb has partnered with nature-based carbon standard Ecosystem Restoration Standard (ERS) to develop a tool for investors to assess the risks and opportunities associated with nature-based projects. The scope of the partnership currently covers three Brazilian biomes – the Amazon, Cerrado, and Atlantic forests. According to the company, the partnership enables investors to determine the probability of project success while detailing all potential risks during the project design phase.
SHIPPING
Shipping insets – Bunker Holding has concluded its first blockchain-powered carbon insetting operation, via a partnership with 123Carbon and Bureau Veritas. The company said that it had delivered maritime emissions reductions to a Fortune 500 company using 123Carbon’s advanced insetting platform, alongside verification partner, Bureau Veritas. In its launch intervention, Bunker Holding connected three different parties: the cargo owner, who wishes to reduce their Scope 3 emissions and is willing to pay the ‘green premium’, the ship operator, to decarbonise its vessels through the use of biofuels, and the biofuel supplier, to deliver safe, high-quality low-carbon fuels. Thanks to the commitment from the cargo owner to purchase Scope 3 Insets, Bunker Holding was able to offer the biofuel at a more competitive cost to the ship operator, enabling the carrier to use biofuels instead of conventional fossil fuels. (bunkerspot.com)
AVIATION
First SAF usage – Emirates has taken delivery of sustainable aviation fuel (SAF) from Shell Aviation at Heathrow, marking the first time airline will use SAF to power some of its flights at London Heathrow and the largest volume of SAF it has purchased to date. Over 3,000 metric tonnes of neat SAF, blended with conventional jet fuel, will be supplied into the fuelling infrastructure network of the airport until end of summer 2024. Emirates will account for, track and trace the delivery of SAF at London Heathrow as well as its sustainability attributes through robust reporting methodologies. In its neat form, SAF can reduce lifecycle carbon emissions by up to 80% compared to using conventional jet fuel.
AND FINALLY…
Pensioners protest – Climate protests aren’t just for the young. The age of members of the activist group Just Stop Oil tend to skew in two directions, either under 25s or over 60s. Among them, for example, 80-year-old Jean, recently told LBC that she had joined Just Stop Oil as a gift to her 18 grandchildren. Two others, a reverend and a retired biology teacher with a combined age of 167, were arrested last week after taking a hammer and chisel to one of the Magna Cartas in the British Library. There were also several pensioners among the 30 or so protesters arrested last October for a sit-in in London’s Trafalgar Square. This is part of a long-running history of older people getting involved in protests that are seen as being led by young radicals, and many of today’s say they grew up in a time of public activism, according to the Telegraph. In the case of climate change, many pension-age members say they are seeing the consequences of their own actions.
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