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TOP STORY
Tech giants pledge to contract 20 mln nature-based voluntary carbon credits
Four of the world’s largest technology companies have joined forced under a new coalition to contract up to 20 million tonnes of nature-based voluntary carbon credits, they announced Wednesday.
VOLUNTARY
Microsoft to buy 36k carbon removals from biochar producer, adds another 1 Mt to Danish BECCS deal
Microsoft has signed an agreement to buy 36,000 tonnes of biochar from a Canadian producer, the firms announced on Wednesday, while the tech giant also increased by 1 million tonnes the purchase volume of an existing deal for Danish bioenergy removals.
FEATURE: World governments split on how to regulate voluntary carbon credits
Governments are classifying voluntary carbon credits (VCCs) in diverse ways, often disagreeing on whether they are financial products, fragmenting voluntary carbon market (VCM) regulation.
Carbon tech startup launches free voluntary credit insight platform
A Berlin-based carbon tech startup has launched a free voluntary carbon credit insight platform on Wednesday, with the aim of making purchases more accessible to all.
Investor group teams up to finance nature-based carbon removal project in Panama
A group of investors has partnered to finance a reforestation project in Panama aiming to restore 10,000 hectares of degraded tropical forests and generate over 3 million carbon removal credits.
EMEA
Green policies take back seat in EU leadership debate
A debate on Tuesday among lead contenders for the post of European Commission President made little room for green considerations, with discussions focusing mostly on defence spending and the need to protect Europe’s interests in the face of China’s aggressive economic policies.
Failing to modernise grid will massively set back EU on climate targets -industry
Failure to modernise the power grid could lead the EU to miss its climate targets by over 30% and jeopardise energy security, the European electricity industry association has warned.
EU ministers face six tests for strengthening green competitiveness, says think tank
A series of tests awaits the European Union, as the bloc still debates how to respect climate commitments and remain economically ambitious at the same time, with the 27 nations’ ministers set to gather in Brussels at the Competition Council on Friday.
Euro Markets: EUAs end unchanged after early 4-month high as data show funds rebuilding net short position
EU carbon allowance prices snapped a four-day winning streak with a marginal loss on Wednesday despite rising to a new four-month high early in the day, as traders shrugged off further gains in natural gas ahead of the June TTF options expiry, after the Commitment of Traders data showed investment funds increased their bearish bets on carbon for the first time in six weeks.
ASIA PACIFIC
Proponents steam ahead to submit ACCU method proposals by July deadline, conference hears
Market participants are scrambling to submit methods to develop Australian Carbon Credit Units (ACCUs) to the government’s interim process, as Canberra itself is still finalising methods that have been in the works for a long time.
South Korea should consider additional carbon trading scheme for regions, researchers say
South Korea should consider more policy arrangements for domestic cities to utilise carbon market mechanisms, such as the creation of a regional carbon trading framework, to drive down emissions from the urban sector, researchers have suggested.
Australian conference holds record buy side, emitter attendee numbers
Carbon credit buyers have been few and far between at conferences in recent years, but the Carbon Farming Industry Forum in Cairns this week hosted a record number, and percentage, of attendees on the buy side, demonstrating confidence in the Australian market, attendees told Carbon Pulse.
AMERICAS
ARB offset issuance retreats from YtD highs, DEBs-tagged units pick up
California regulator ARB issued compliance-grade offsets tagged with direct environmental benefits (DEBs) to the state after a two-period hiatus, but the overall distribution fell from the highs reached two weeks earlier.
SHIPPING
BRIEFING: EUA price must hit €150/t to push ship owners to adopt greener fuel
EUAs need to be trading at least €150 per tonne to start incentivising ship owners to switch to biofuels in a subsidised environment, while the price would need to be markedly higher than that to ensure a shift to more expensive green fuels like ammonia or methanol, a freight manager told a conference Wednesday.
First sea trials of slow steaming software for shipping industry sharply cut CO2 emissions
Two sea trials of a new slow steaming solution for the shipping industry have sharply cut CO2 emission levels, confirming earlier pilot programs, a shipping consortium announced this week.
BIODIVERSITY (FREE TO READ)
Australian Repair Market to launch in January with a single method, official says
Australia will release the first Nature Repair Market methodology in January, a government official said Wednesday, officially kicking off the world’s first government-regulated voluntary biodiversity credit market.
UN-backed alliance seeks to settle on a definition of biodiversity credits
The UN-backed Biodiversity Credit Alliance (BCA) on Wednesday released a paper seeking to give a definition of biodiversity credits and associated terms, in an attempt to avoid the market making a false start.
First five corporate nature positive strategies approved by campaign group
Campaign group Business for Nature has accepted its first batch of strategies targeting a nature positive economy by 2030 from corporations based in the UK, France, and Taiwan, six months after launch.
FEATURE: Fish farming marine destruction claims highlight challenge in meeting GBF targets
Environmentalists are increasingly sounding the alarm over what they claim are destructive impacts of the global fish farming industry, but government hesitance in imposing stricter regulations is seen as an illustration of the challenge ahead in meeting biodiversity targets.
Rhino bond has lessons for biodiversity credits, expert says
The nascent biodiversity credits market can learn from the work of the World Bank’s rhino bond, said an expert, whose organisation worked on the issuance.
Over 50% of the world’s mangrove ecosystems at risk of collapse by 2050, IUCN says
The International Union for Conservation of Nature (IUCN) released Wednesday its first-ever assessment of the world’s mangrove ecosystems, showing that more than half of them are at risk of collapse by 2050.
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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
Belgium lags behind – Belgium is in danger of failing to meets its EU climate commitments on CO2 emissions and renewable energy, with the country’s transport sector in particular falling behind. The Federal Planning Bureau looked at the future of energy supply and demand in Belgium and assessed whether the country can meet its 2030 and 2050 targets. It found that even if the main elements of the energy and climate plan are implemented, Belgium will not achieve its target of reducing emissions by 47% by 2030 compared to 2005. The transport sector is performing especially badly, only achieving an 11% reduction. The Federal Planning Bureau said that the national car fleet needs particular attention in the medium term. (Brussels Times)
Green market quotas – The German economy ministry has proposed using public procurement contracts and quotas for climate-friendly basic materials to drive demand for climate-friendly products like green steel or cement in a new concept on “green lead markets”. The aim is for green products and processes to become increasingly competitive and for the markets to become self-sustaining in the medium- to long-run. (Clean Energy Wire)
UK nuclear – The island of Anglesey in northern Wales is being lined up to host a gigawatt-scale nuclear energy plant as the UK government seeks to boost its supply of stable, low-carbon energy to meet its net zero target. The project would potentially mark the third new large-scale atomic plant in Britain, after decades without a new facility being completed in the country. The country currently has only one large-scale plant under construction, EDF’s Hinkley Point C, which is billions of pounds over budget and years behind schedule, while another station in development, Sizewell C, is still working to get financing. The UK agreed to buy the Wylfa site from Hitachi earlier this year for £160 mln in an effort to revive the site after the Japanese company abandoned it and in a bid to quadruple nuclear capacity by 2050. (Bloomberg News)
Support for CBAM – Serbia needs to align its regulations with the EU carbon border adjustment mechanism (CBAM) and encourage the development of a circular economy, facilitate investments in green energy, and protect the domestic market against unfair competition, according to a panel at the Belgrade Energy Forum. The implementation of CBAM will affect more than 15,000 people directly employed in the affected industries in Serbia, and over 50,000 employed indirectly, according to representatives of domestic companies speaking at the forum, so the country needs to develop parallel regulations to support these industries and the related jobs, they say. These companies plan to set up an association of the energy-intensive industries that are subject to CBAM in order to act together, offer solutions, and overcome the challenges in partnership with the state. Since Oct. 1, 2023, producers of aluminum, fertilizers, cement, steel, and hydrogen, as well as electricity exporters, have been required to measure the CO2e released during the production of the goods they export to the EU. Starting on Jan. 1, 2026, they will be obliged to pay the EU’s carbon border tax. (Balkan Green Energy News)
ASIA PACIFIC
Making progress – The Economy Ministry of Malaysia has tabled a memorandum to the Cabinet on Tuesday laying the legal framework on carbon capture, utilisation, and storage (CCUS) policy, The Sun reported. The federal government is aiming to position Malaysia as a CCUS hub in the Asia Pacific region and is pushing for bilateral agreements with countries for the same. A standalone CCUS Bill will focus on the value chain and highlight carbon capture, transportation, utilisation, and storage of CO2. The bill will now head to the parliament for final approval and is expected to be tabled by November this year.
Giving a hand – Japan’s Mizuho Financial Group will provide financing to help close coal power plants ahead of schedule in Southeast Asia, according to Nikkei. Mizuho, now having tight restrictions on new financing for coal power facilities that prevent it from funding early shutdowns, is planning to change the policy in July to allow limited financing that helps operators move away from the fossil fuel. Given that Asian coal plants often have capital plans that would be derailed by an early shutdown, the Japanese bank said it will offer financing to help operators repay external loans taken to build these facilities or pay out promised dividends. However, the funding will come with certain conditions, requiring recipients to commit to shifting towards renewable or low-carbon energy projects, the report said.
Government support – South Korea plans to build a ‘national team’ to support overseas expansion of renewable energy and the commercialisation of carbon capture and storage (CCS), the Ministry of Trade, Industry and Energy (MOTIE) said on Wednesday after a committee meeting. Over the past four years, Korean companies have won overseas renewable energy projects worth a total of $14.3 bln (41 cases, 20.4GW), according to a ministry release. As global competition in the market is expected to intensify, MOTIE plans to strengthen the competitiveness of domestic renewables project developers through coordination across government agencies including the Korea Trade-Investment Promotion Agency (KOTRA).
AMERICAS
Peak pollution – US natural gas plants operating during peak demand periods release more air pollutants than average generators and are more likely to be located near disadvantaged communities, according to a new Government Accountability Office (GAO) report published Tuesday. The plants, also known as peakers, typically run less than 15% of the year, but emit approximately 1.6 times more sulphur dioxide, which causes a range of respiratory problems, the report read. A community with a 71% minority population living under the federal poverty line is likely to be 9% closer to a peaker than the average community, the GAO analysis found. The US EPA finalised in late April new emissions standards for new natural gas-fired power plants that include updated regulations on sulphur dioxide pollution.
Shell shies away – Oil giant Shell shareholders largely supported the firm’s decision to backtrack from its climate targets, the Financial Times reported Tuesday. Some 78% of shareholders voted for the group’s revised energy transition strategy to cut emissions slower than it previously planned. Moreover, they rejected a resolution from activist group Follow This and 26 other investors that pressured Shell to strengthen its climate targets. Chair of Shell Andrew Mackenzie said that the company is committed to achieving its net zero by 2050 goals, but added that more investment in hydrocarbons, especially in LNG, would be required to support the transition. The firm is now aiming to reduce the net carbon intensity (CI) of its energy products by 15-20%, compared to a 2016 baseline, by 2030 instead of 20% as originally pledged. It has also scrapped its 2035 target of a CI reduction of 45% by 2035.
RGGI resolve – Virginia Democrats have promised to continue their efforts to return the state to RGGI, which it exited at the end of last year, reported WVTF. Earlier this month, Democrats in the state legislature reached a budget deal with Governor Glenn Youngkin (R) that excluded proposed language that would mandate Virginia’s return to the regional power sector cap-and-trade programme. Additionally, the timeline of ongoing litigation challenging Youngkin’s repeal of the state’s RGGI regulation is not currently clear, according to the local outlet.
CCUS community engagement – The first meeting of two taskforces chartered by the US DOE discussed, amongst other topics, the need for early community engagement. Experts suggested that project developers engage community members in small groups and short meetings, as well as perform background research prior to engagement. A representative from the National Wildlife Federation also suggested that developers engage the community prior to the issuance of a permit, and consider new models in community benefits arrangements (CBAs), such as co-ownership. In early April, a Colorado-based energy firm and a Nebraska environmental group announced what they referred to as a “landmark” CBA that ensures a proposed CO2 pipeline can proceed unopposed, adding that they hope it sets a precedent for other projects facing similar issues. Public resistance to CCUS-related projects, such as CO2 pipelines, have proved a substantial roadblock to CCUS deployment in the US, for example, with a subsidiary of an Illinois energy firm recently announcing plans to reduce the capacity of a proposed pipeline by roughly one-third following public backlash.
Youth climate lawsuit – The Montana Supreme Court has scheduled oral arguments for July 10 on a Aug. 2023 ruling that the state has violated young people’s right to a stable climate, reported E&E News. A lower state court ruled that state lawmakers had violated the Montana Constitution by barring agencies from considering the climate effects of fossil fuel projects, a decision which the state immediately appealed.
CA offsets bill – SB 1036, which targets oversight over the purchase and sale of carbon offsets in California passed the Senate floor on a 31-5 vote Tuesday and is ordered to the Assembly. It now 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.
LA CCS bill – One of many CCS bills in Louisiana state legislature passed the Senate floor on Thursday on a 35-0 vote and is now scheduled for House concurrence on Thursday. Should the House concur, the bill will be sent to Governor Jeff Landry (R) to sign into law. 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.
Carbon tax concern – Deputies in San Luis Potosi have introduced a proposal to delay the implementation of a carbon tax in the Mexican state due to expected difficulties faced by regulated entities in complying, reported Plano Informativo. The carbon tax was previously scheduled to start on June 10, but the proposal has suggested pushing this date back to July 1, to ease compliance by having the tax cover a whole month. In addition to this postponement, the proposal would also establish that revenues will be allocated to the state Public Environment Fund and the Climate Change Fund. Jose Guadalupe Torres Sanchez, the secretary general of the state government, previously said in March that there would be no more postponement of the tax past June, as it was originally slated to start Apr. 1.
VOLUNTARY
Canadian-European carbon partnership – Saskatchewan-based carbon credit origination and streaming company Carbon RX and Paris-headquartered DT Master Carbon announced a partnership Wednesday to facilitate the marketing and distribution of former’s regenerative agriculture credits in Europe. In April, a Carbon RX project was the first to receive approval from nascent New York-based registry Pure Sky. The Canadian firm has previously secured similar agreements in Asian countries, such as Singapore, Taiwan, China, and Malaysia, it said.
AB afforestation – Wild and Pine, an Alberta-based project developer, broke ground on the third phase of its StoneWoods Forest Carbon Project on Thursday, totalling at 390 hectares of land. The afforestation project has an overall target to restore 3,700 acres (1500 ha), with its fourth phase open for susbcription. Insurance firm Aviva Canada contributed C$6.2 mln ($4.5 mln) to the project in Dec. 2023, and is among companies Telus, Parkland Corporation, and the Edmonton International Airport as investors in the project.
AND FINALLY…
Flame vs. future – Traditional gas stoves used in cooking emit methane and other harmful pollutants that contribute to climate change, but the adoption of induction stovetops remains a challenge as some argue that cherished culinary traditions rely on gas burners for their unique flavour – such as wok hei, Grist reported. Wok hei, loosely translated from Cantonese as the “breath of the wok,” represents the pinnacle of the stir-fry cooking technique most commonly associated with southern China. Many chefs say that fire, and therefore a gas stove, is essential for achieving the aroma, putting it at odds with climate-driven legal trends – including the recent ban on the use of natural gas in buildings, which included gas stoves. For example, Berkeley’s local gas ban in 2019 resulted in the California Restaurant Association filing a lawsuit contending that gas is essential for certain specialty techniques, including “the use of intense heat from a flame under a wok.” As of Apr. 2024, the city of Berkeley no longer enforces the ban and is set for a repeal. Additionally, another reason for the lack of commercial induction uptake is the cost – induction wok burners for restaurants remain prohibitively expensive in the US, up to three to four times as much as gas-powered ones, especially since the technology is still maturing.
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