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TOP STORY
EU maintains strong carbon removals position in Article 6 call for input
The EU has said it struggles to see “a sufficiently clear direction for further work” in a response to a call for input on Article 6.4 removals crediting guidance under the Paris Agreement, with a wide range of starkly different positions also submitted by other entities highlighting the difficulties ahead of COP29 with finding consensus on key methodological matters.
WEEKEND READS
DATA DIVE: Booming energy company activity lifts voluntary carbon credit retirements in 2024
Credit retirements across the four main registries in the voluntary carbon market are on track for a record year, lifted by particularly buoyant activity among energy companies.
FEATURE: Seismic studies the new frontier for CCS earnings
Seismic companies are increasingly collaborating, investing, and lining up for carbon capture and storage (CCS) work, thanks to increasing interest from countries globally looking to the technology as a way to foster CO2 trading and markets, as well as meeting emissions reductions targets.
FEATURE: Just transition approaches need refinement, some countries lead the way
Public backing for the low-carbon transition is a key cornerstone of enabling economies to shift towards a 1.5C-aligned world, with a growing number of countries now acknowledging the importance of a ‘just transition’, though approaches diverge significantly and finance remains a key stumbling block.
VOLUNTARY
Verra on track to launch nature framework late this year, will pursue stewardship credits
Crediting standard Verra is on track to launch its nature framework towards the end of the year with a number of adjustments following its recent consultation process, and has decided to go ahead with testing nature stewardship credits or certificates as a separate unit type.
Verra begins revision of voluntary carbon agriculture management methodology, consolidates grassland programmes
Voluntary carbon standard Verra is initiating a revision of the methodology to credit improved agricultural land practices and will also consolidate its grassland crediting programmes, it said Friday.
INTERVIEW: Developer of low-concentration CO2 capture strives for below $100/t in a decade
A developer of carbon capture technology using a new class of material able to capture CO2 at very low concentrations aims to reach costs of below $100 per tonne in the next decade, thanks to its high energy efficiency and use of low-grade waste heat.
AMERICAS
US appeals court upholds EPA power sector emissions rule amid Republican challenge
A US federal appeals court has denied a temporary halt to an Environmental Protection Agency (EPA) rule that mandates significant reductions in carbon emissions from existing coal-fired and new natural gas power plants.
WCI reschedules Q2 auction for May 22
California and Quebec announced Friday a new date for the joint WCI carbon allowance auction for Q2 that was postponed earlier in the week due to technical difficulties.
DOE funded $19.7 mln “technically unacceptable” CCS project, says US Government Accountability Office
The US Government Accountability Office (GAO) has found that a carbon storage project funded by the Department of Energy (DOE) did not meet technical thresholds and is now delayed and the cost overrun, it said in a report published Thursday.
US energy sector could see $1 trillion less low-carbon investment under second Trump presidency -report
A November election victory for former US President Donald Trump would likely see reduced support for low-carbon energy and a rollback of methane, power plant, and transportation emissions regulations, according to a report published Thursday.
Speculators boost CCA net length for first time since early April, RGGI seen in demand -US CFTC data
Speculators notched their first increase to their California Carbon Allowance (CCA) net holdings since early April, while demand rose across the board for RGGI Allowances (RGA), according to weekly data from the US Commodity Futures Trading Commission (CFTC).
Think-tank releases US plan to hit 2050 net zero targets ensuring economic growth
A public policy arm of a global think-tank has outlined recommendations for the US to achieve net zero by 2050 while ensuring reliable, affordable access to energy for economic growth.
Brazilian national civil aviation authority incorporates CORSIA into law
The board of directors of the Brazilian National Civil Aviation Agency (ANAC) unanimously approved Tuesday a resolution that incorporates the UN’s CORSIA aviation offsetting into law.
EMEA
EU ministers call for decarbonising soon-to-be ETS-covered heating and cooling sectors
Heating and cooling of buildings will be the next big decarbonisation challenge across the EU, according to 15 of the 27 member states, as the sector makes its debut into ETS2 from next year.
Incoming far-right Dutch coalition party set to dial back climate ambition
The Netherlands is set to U-turn on national climate and energy policies and complicate climate discussions at EU level as a new coalition government including Geert Wilders’ far-right party prepares to take over.
COP29 host Azerbaijan drafts carbon tax law as it pursues new climate agenda
COP29 host Azerbaijan is drafting a law that will introduce a domestic carbon tax, the head of this year’s UN climate conference in Baku said, as reported by the national news agency.
Euro Markets: EUAs extend sideways trading, post 1.7% weekly loss but remain in channel
European carbon prices rose early on Friday, catching support from rising natural gas and a relatively strong auction outcome, before giving up most of their gains to post a 1.7% weekly loss as the market continued to move within the €68-€72 range it has occupied all week, while UK Allowances rose to a three-month high in late trading.
ASIA PACIFIC
NZ Market: NZU price sinks as govt ETS consultation poorly received by the market
The price for NZUs closed around 6% lower on Friday as a recent government consultation proposing weaker ETS settings has been met with “anger and frustration” in the market.
PNG NGOs write to govt demanding consultation on carbon market regulation
Environmental groups in Papua New Guinea have once again written to the government calling for transparent and robust consultation on the country’s carbon market regulations.
Pakistan eyes cement, waste sectors to generate credits under Article 6
Pakistan is targeting its cement and waste management sectors for decarbonisation, while also exploring carbon finance opportunities under Article 6 of the Paris Agreement.
China renewable energy expansion continues to outpace thermal generation in April
China saw growth in renewable power generation last month continue to surpass the expansion of thermal power, though monthly coal output remained at a relatively high level, according to the latest government data.
Biochar company raises $5 mln in funding for Southeast Asia operations
A Southeast Asia-focussed biochar company has received $5 million in funding via investment from Mekong Enterprise Fund IV.
CN Markets: CEAs flat, as trading volume falls to 14-month low
China’s national carbon market saw allowance prices rise marginally over the past week, while liquidity dropped to the lowest level since Mar. 2023 amid an absence of regulatory news.
India to ensure benefit for every stakeholder before rolling out carbon market policy -official
India will seek to ensure every stakeholder will benefit before rolling out a policy to support its carbon market, a government official said this week.
INTERNATIONAL
Only half of global carbon revenues directed to climate and nature -report
Only about half of carbon revenues generated globally from compliance markets is directly used for climate and nature, a new report has found.
Critical minerals ‘not a deal-breaker’ for climate goals – at least for now, IEA says
The International Energy Agency (IEA) has issued a cautious warning about the supply of critical raw materials needed for clean technologies, pointing to “potential strains” in supply that could slow down the green transition, but aren’t enough to derail it for now.
BIODIVERSITY (FREE TO READ)
Canadian financial hub sets up research centre to develop biodiversity credits, green bonds
A Canadian financial hub has announced it will set up a research centre tasked with developing financing mechanisms to scale investments towards nature protection, including biodiversity credits and biodiversity bonds.
Australian organisation releases guide to enhance biodiversity in solar farms
An Australian non-profit consultancy has released a set of strategies to achieving net gain in biodiversity within new solar farms, as its country plans to enhance efforts to prevent renewable plants from harming ecosystems.
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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
INTERNATIONAL
Freight challenges – Three maritime chokepoints – the Panama Canal, the Suez Canal, and the Turkish Straits – could see combined GDP losses of $34 bln in 2030 due to climate change, according to a peer-reviewed study in the Journal of Shipping and Trade. Extreme weather events could impact the trade of agricultural commodities, with disproportionate impacts to the MENA region and the Tigris and Euphrates area.
EMEA
The French factor – The French government views the decarbonised nature of its electricity mix as an unparalleled asset in attracting foreign investment, though the reality is more complex with the price of electricity, reliability of the grid, and other criteria just as important, reports Euractiv. In 2024, around a third of the record €15 bln of foreign investment announced went to projects linked to decarbonisation in France. One of every two investments in the nation goes to industrial projects, according to a ranking by consultancy EY. The decarbonised nature of France’s grid at around 60g of CO2 per kWh is indeed an asset, say experts, but other factors are important too, such as power price, regulatory stability, workforce quality, internet speed, and geographic location, they say. Reinvesting in nuclear power for low-cost, low-carbon electricity would further boost the country’s attraction, say the experts.
Running out of steam – France’s forests are showing signs of dwindling in their ability to sequester CO2, according to a study by the French National Institute for Geographic and Forestry Information (IGN) and the FCBA technology institute, which shows that the general trend is for the storage capacity to decline from 2020-2050. French forests are increasingly vulnerable to the impacts of overexploitation for timber, and rising climate threats like fire, infestation, and drought. The study shows considerable variation in carbon sequestration, ranging from 40 MtCO2e/year in an optimistic scenario to just 3 MtCO2e/year in the most pessimistic. The French government aims to plant a billion trees by 2032, but the main effects of this initiative won’t be seen until post-2050, and will depend on the effectiveness of the selection of planting sites and the success of plantations. (energynews)
Great British Energy – Sir Keir Starmer, leader of the UK Labour Party, reinforced the party’s pledge to set up Great British Energy, a publicly owned clean energy company, if it wins this year’s general elections, during an event yesterday in Essex. The vision for Great British Energy is save UK households £93 bln, deliver 100% clean power by 2030, deliver energy security, create thousands of local jobs, and make the country energy independent. Other pledges made by Starmer include sticking to tough spending rules to deliver economic stability, and pledges on healthcare, policing, and teaching. (BBC News)
Untapped potential – Africa’s vast renewable energy and natural resources could herald a voluntary carbon market with scale of $10-40 bln by 2030, creating up to 190 mln jobs in Africa by 2050 with a carbon price of $80/t, according to the 2024 Economic Report on Africa by the United Nations Economic Commission for Africa (UNECA). However, failure to ensure credit additionality, strong governance, and high enough prices could lead to perverse market incentives that increase CO2 emissions and slow the climate transition, it says. Credits from the VCM have so far been only a small slice of those offered by regulatory compliance market, the report notes. In 2022, the VCM value was close to $2 bln, while the value of traded carbon permits in global markets reached a record $909 bln. It suggests that by capitalising on its untapped renewable energy potential and growing workforce, Africa can boost its position in the VCM.
EUA hike for CCUS – The price of allowances in the EU ETS would need to exceed €200/t to create a business case for the use of carbon capture, use and storage (CCUS), according to Tarek El Hawary, executive of German gases company Messer. Though prices of around €150/t, forecast to arrive by the end of the decade by some analysts, would make the technology less dependent on EU support payments, he said. Support provided by the EU Innovation Fund, currently covers about 60% of CCUS project costs, but that funding is limited, El Hawary said. Current EU ETS price are trading around €70/t, which is too low to make CCUS investments work without support. El Hawary suggests that the EU consider locations further east for carbon storage in future, such as Romania and Bulgaria, to make use of the coal mines and depleted oil and gas fields there. (montelnews)
ASIA PACIFIC
Keep it simple – A number of key reforms are being implemented by the Australian Energy Market Operator to make it easy to connect and operate the country’s growing fleet of big batteries, Renew Economy reports. The changes involve the ability for battery storage projects to register as a single unit, rather than two. This will streamline the connection process for new batteries and should make it simpler to bid into the market and for market dispatch. It should also create greater transparency around how much storage is available in the market. AEMO hopes the new reforms will go live in June. The country has more than 4 GW of new capacity under construction or contract.
Hydrogen supply chain – Central Japan Railway has signed a memorandum of understanding (MoU) with Eneos and Hitachi to build a hydrogen supply chain necessary for the introduction of hydrogen-powered vehicles, targeting various carriers including liquefied hydrogen and methylcyclohexane (MCH), they announced this week. The collaboration will focus on the production and transportation of hydrogen, taking into account the characteristics of carriers and their compatibility with existing infrastructure, the companies said.
Lost potential – Bangladesh has huge potential to earn carbon credits, the country’s state minister for finance said during a seminar on carbon financing challenges adding that two programmes on solar home system and the improved cooking stove which has earned most credits for the country are no longer in operation, The Business Standard reported. Speakers at the event acknowledged the need to establish comprehensive policy guidelines, raise awareness, and encourage effective participation of all relevant stakeholders to address the gap the country is facing in climate financing. Bangladesh is among the lowest carbon emitters globally but is highly vulnerable to climate change impacts. Carbon financing can be a useful instrument in this regard, the speakers noted.
AMERICAS
Workshop date – ARB announced the date for the next cap-and-trade rulemaking public workshop on May 31 from 0900-1200 Pacific. Staff will review and present on topics relevant to allowance allocation and emissions coverage. Market participants had been disappointed after the prior ETS rulemaking workshop on Apr. 23 had failed to clarify which buckets proposed emissions budget cuts would be drawn from and other cost containment mechanism details.
Not so fast – California Governor Gavin Newsom (D) proposed shifting $1.7 bln in general fund spending to the Greenhouse Gas Reduction Fund, but faced pushback from members of the state Assembly and Senate. Newsom’s proposal to use proceeds from cap-and-trade auctions to address a $27.6 bln budget deficit did not sit well with elected officials, as Assemblymember Steve Bennett (D) said that there should be debate regarding what cap-and-trade revenue is spent on, E&E News reported. Newsom looked to backfill cuts to transportation and other environmental programmes.
Whistleblower blues – The administration of Washington Gov. Jay Inslee did not force out a transportation official who wanted to reveal that the state’s new carbon market could increase gasoline prices by as much as 50 cents per gallon, according to a state-commissioned investigation. The analysis released Wednesday cleared the Washington Department of Transportation of wrongdoing in the case of Scott Smith, who left his job there last November. Smith has sued the state, claiming he was a whistleblower who was pushed out. The case is pending in the state’s superior court. Smith — in writing a fuel price forecast for the state — claims he was pressured to omit language that predicted the carbon market likely would raise gasoline prices. The investigation didn’t find enough evidence that the events Smith described — including his job later being eliminated — “were in retaliation for Smith’s alleged refusal to provide false or misleading information about the source of fuel cost increases,” according to the report. (E&E News)
AND FINALLY…
Hushing, or just less washing? – The concept of ‘greenhushing’ – where companies may deliberately understate their green initiatives – has garnered attention but lacks substantial evidence and a clear definition. Research by NewClimate Institute and surveys by South Pole suggest that rather than ‘greenhushing’, significant corporate trends involve retracting vague carbon neutrality claims. This shift towards more accurate and transparent climate communications is seen as a positive development in light of emerging regulations and stricter standards. Major companies like Nestle, Danone, and Volvo are moving away from unsubstantiated claims, focusing on clear, measurable actions such as reducing emissions and enhancing sustainability in their operations. The discourse, NewClimate Institute argues, should thus focus on enhancing these regulations and standards to further discourage greenwashing and promote genuine corporate responsibility in environmental matters.
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