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TOP STORY

European oil firm inks $90-mln jurisdictional REDD+ deal with Ghana

A European oil firm has agreed to spend around $90 million to purchase as many as 10 million carbon credits from nature-based carbon projects in Ghana as part of a jurisdictional REDD+ deal.

VOLUNTARY

INTERVIEW: Puro CEO sees strong but bounded role for carbon removals in compliance markets

Carbon removals (CDR) could contribute meaningfully to compliance carbon pricing systems but they should be limited to a certain percentage of total emissions permits and may be subdivided by durability, Puro.earth CEO Antti Vihavainen told Carbon Pulse.

Verra to issue new Article 6-aligned carbon credits by year-end

Voluntary carbon standard Verra plans to issue new credits aligned with Article 6 of the Paris Agreement by the end of the year, a company executive told Carbon Pulse.

Report warns of “influx” of low-quality biochar carbon removal credits

Research from a carbon removal marketplace has raised concern that a large share of the expected future supply from the sector may be of a low quality, brought on by a rush to develop projects due to a recent surge in demand for credits.

Puro certifies first direct air capture carbon removals

Puro.earth has certified its first direct air capture (DAC) carbon removals, according to a release Thursday.

Zero Carbon Systems buys DAC startup Global Thermostat for “tens of millions of dollars”

Zero Carbon Systems has acquired Global Thermostat, one of the first direct air capture (DAC) startups, in a deal valued at tens of millions of dollars.

Offset registry partners with insurance firm to enhance credit buffer management

A major offset registry is partnering with a specialist carbon insurance company to develop “next generation buffer management”, the two firms announced on Thursday.

Xpansiv raises fresh funds from investors

Market infrastructure firm Xpansiv has secured fresh funding from investors, the company announced Thursday, without disclosing further details.

Equatic unveils ISO-certified MRV methodology for ocean-based carbon removals

Equatic, in partnership with EcoEngineers and the International Organization for Standardization (ISO), has launched a new MRV methodology for electrolytic ocean-based CO2 removals.

EMEA

UK ETS consults on integrating carbon removals

Britain would place supply controls on greenhouse gas removals (GGRs), while keeping the gross cap that is in place for UK Allowances (UKAs), in the early years of their potential integration into the ETS, as proposed in a public consultation launched Thursday.

CBAM risks hampering power decarbonisation in UK and Balkan countries, energy traders say

The design of the EU’s Carbon Border Adjustment Mechanism (CBAM) risks creating a counter-productive impact on EU electricity decarbonisation, a key policy official at Europe’s energy traders association told a conference on Wednesday.

‘We may not call it green’: Next EU political cycle to focus on investment, says top official

The next European Commission that will be appointed after the June EU election is unlikely to radically change course on climate policy, but rather shift its focus to industrial policy and investment to achieve the bloc’s climate goals, a top EU official has said.

EU carbon removals framework to shift financing away from developing countries, expert says

The EU’s carbon removal framework could lead climate finance to be shifted away from least-developed countries, a conference heard.

European markets regulator proposes tightened emissions allowance trading controls

Europe’s financial markets regulator has launched a consultation on proposed amendments to technical standards for commodity derivatives, including enhanced position management controls and reporting requirements for venues offering trading in emissions allowances.

Hungary to prioritise green transition when holding EU presidency

Hungary’s energy and climate minister said the country will focus on advancing the green transition across the 27-nation bloc, as among the top climate and energy priorities during its turn with the EU presidency from July until year end.

UK fund secures £20 mln for early-stage climate tech ventures in Europe

A UK venture capital firm has successfully closed a £20 million funding round to invest in European pre-seed and seed-stage companies developing scientific solutions for decarbonisation.

Euro Markets: EUAs give up rally to four-month high to settle lower, as gas and UKAs extend gains

EU carbon permit prices ended Thursday moderately weaker for a second day even after setting yet another four-month high, as natural gas markets continued their volatile rally and breached a key technical level, while UK Allowances strengthened for a seventh day to reach their highest since the first week of the year.

Cambridge scientists latest to claim ‘green cement’ crown

Boffins from Cambridge University in the UK have become the latest to claim the green cement mantle with their idea of “electric recycling of Portland cement” featuring on BBC news this week, adding to the growing band of innovators seeking an emissions solution for the hard-to-abate industry.

AMERICAS

Republican state AGs ask US Supreme Court to prohibit fossil fuel damages lawsuits

A group of 19 US Republican state attorneys generals (AGs) filed a petition Wednesday asking the nation’s highest court to prohibit efforts by Democratic-led states to hold oil producers financially liable for the climate impacts of fossil fuels.

RGGI allowance surplus grew in 2023, report shows

The RGGI carbon market saw its permit bank surplus expand slightly in 2023, according to a report published Thursday.

WCI Markets: CCAs rally post-auction, WCAs remain illiquid

California Carbon Allowance (CCA) prices rallied through the rescheduled Q2 auction as market participants looked to the forthcoming cap-and-trade workshop, while Washington Carbon Allowance (WCA) prices gained on significantly smaller volumes than the week prior.

Petrobras presses on with support for nature-based voluntary carbon projects

Nature-based voluntary carbon projects, such as reforestation in the Amazon, are cost-effective and critical for the planet with known and manageable risks, with Petrobras now developing its credit strategy focused on the sector, an executive of a Brazilian oil company told a conference Thursday.

ASIA PACIFIC

GreenCollar walks away from leadership roles in Australian integrated farm land management method development

Australia’s largest carbon project developer, GreenCollar, has resigned from co-chairing industry working groups developing the integrated farm land management (IFLM) method due to losing confidence in the process, a spokesperson told Carbon Pulse.

AU Market: Sophisticated financial instruments gaining traction in ACCU market, but future exchange will drive scale, traders say

Swaps and options transactions in the Australian carbon market are becoming more common place thanks to the variety of reasons entities were venturing into the market, traders told a conference this week, but scale will also be needed to meet the coming demand from the Safeguard Mechanism.

Australia Market Roundup: NSW extends the life of country’s biggest coal-fired power station, ACCU issuance slumps

The New South Wales state government has struck a deal with Origin Energy to push the closure date of the Eraring coal-fired power station back by two years due to grid reliability and security concerns.

NZ environment commissioner calls for forestry to be removed from ETS

The New Zealand commissioner for the environment has joined a growing list of bodies calling for forestry to be removed from the country’s emissions trading scheme.

Major Chinese papermaker eyes voluntary carbon deals in Gabon

A Chinese forestry and paper company has teamed up with a local partner in Gabon to explore carbon project opportunities in a rare instance of a China-based firm looking outside its own borders for emissions reduction ventures.

Shanghai to auction off 1 mln CO2 permits under local ETS

The Shanghai municipal government is set to auction off 1 million CO2 allowances for its municipal emissions trading scheme at the end of May, with the price floor set near current market levels.

Australian states’ work on carbon markets informs Commonwealth innovation, conference hears

Australia’s states can work with the federal government to scale up the nation’s carbon market, a conference heard this week, although an industry roadmap would help guide its development.

INTERNATIONAL

US court green lights oil major’s case against investor-driven climate action

A US federal judge on Wednesday dismissed a request from an investment advisory firm to halt an oil major’s lawsuit against shareholders over their calls for stronger climate targets.

Zambia signs $30-mln agreement with World Bank to reduce greenhouse gas emissions

The government of Zambia has entered into an agreement with the World Bank to cut greenhouse gas emissions in the Eastern Province of the African nation, the bank announced this week.

BIODIVERSITY (FREE TO READ)

Indian market regulator opens for use of controversial green credits to earn ESG “leadership” status

India’s securities and commodities market regulator has proposed changes to the country’s Business Responsibility and Sustainability Reporting (BRSR) framework, opening for companies to earn “leadership” status by listing green credits they or their value chain partners have generated through tree-planting and other environmentally beneficial activities.

Countries have duty to protect the oceans from climate change impact, international maritime court says

The International Tribunal for the Law of the Sea (ITLOS) has declared that signatory states of the UN Convention on the Law of the Sea (UNCLOS) have an obligation to protect the ocean from the impacts of climate change, with small island countries hailing the decision as a victory.

NatureMetrics launches free business performance scoring tool

Biodiversity monitoring company NatureMetrics has launched a free tool for businesses to score their nature performance by answering a series of questions.

RePlanet announces partnership to create blockchain biodiversity credits marketplace

A blockchain marketplace for enabling transparent sales of biodiversity credits is almost ready to begin selling, following a partnership between credit developer RePlanet with a certification organisation and a blockchain company, Carbon Pulse has learned.

Biodiversity Pulse: Thursday May 23, 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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BIOCHAR REPORT

Supercritical’s latest report reveals a 30x surge in biochar supply over the next four years, however 88% of this growth comes from low-quality credits. “Boom or Bust? 2024 Biochar Market Outlook” delves into the pressing challenges buyers face, offering exclusive data and trends from Supercritical’s own marketplace which covers 80% of the market. Discover why high-quality biochar commands premium prices and how savvy buyers secure long-term agreements amidst the scarcity. This essential report equips you with the insights needed to navigate the evolving biochar landscape and make informed decisions in this burgeoning market. Download the report

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• Head of Carbon Project Development (m/f/d) – Volkswagen ClimatePartner GmbH – Munich
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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

and much more! Register here!

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BITE-SIZED UPDATES FROM AROUND THE WORLD

EMEA

5.8% GHG cut in France – France cut its GHG emissions by 5.8% in 2023, higher than the 2.7% achieved the year before, according to statistics released on Wednesday. The announcement was hailed by French President Emmanuel Macron who said the cut was unprecedented. “French ecology is producing its results, this should encourage us all. Let’s not give up!” he exclaimed on X. If maintained, this rate of GHG reduction would allow France to meet its decarbonisation targets, reports Euractiv. Environmental groups were less enthusiastic, however, saying the 9% fall in industrial emissions could be attributed mainly to a fall in economic activity rather than structural improvements.

Objecting protectionism – South Africa is considering lodging a formal complaint to the World Trade Organisation (WTO) against EU’s “protectionist” CBAM, the country’s trade minister has said. The EU is South Africa’s largest trading partner and according to the South African Reserve Bank (SARB), EU’s carbon tax will lead to a 10% drop in exports by 2050. South Africa is in discussions with the EU to find a settlement, failing which, it will lodge a formal complaint to the WTO, Reuters reported. Many developing countries including South Africa believe that CBAM will penalise such nations that are struggling to raise the hefty investments needed to reduce industrial CO2 emissions. Last year, the EU launched a trial phase of the world’s first carbon border levy, which from 2026 will impose costs on imports of steel, cement, aluminium, fertilisers, electricity, and hydrogen.

Green boost – Using the green transition to support the levelling up agenda in the UK will be among the key questions that the Conservatives will have to address in trying to persuade the electorate to keep them in power on the upcoming general election date of July 4, 2024. The Conservatives lag behind the opposition Labour party by almost 21 points in polling, and while Ministers hope a fall in inflation to 2.3%, expectations of interest rate cuts, and incipient signs of growth will help support their narrative that a corner has been turned, the reality is that most voters still feel squeezed. Using the green transition to revive productivity and promote growth in a listless economy will be one of the levers that parties can draw on in the run up to the election, the FT reports.

ASIA PACIFIC

Ultimatum – Japan’s top power generator JERA warned on Thursday it could consider fuel purchases and investments in Asia, the Middle East and the US if Australia does not provide sufficient financial support. Australia now accounts for about 40% of all energy imports by Japan, which has doubled down on investments there after a fallout with key supplier Russia over the Ukraine war. However, federal budgetary support for CCS is “very small” and “disappointing,” Gaku Takagi, the company’s chief executive in Australia, said. (Reuters)

Make what you need – Australia could make and supply around 20% of its domestic solar demand if the government’s Solar Sunshot programme goes to plan, Climate Change and Energy Minister Chris Bowen told media this week, Renew Economy reports. Bowen told the ABC that Australia would need to put 60 mln solar panels on its roofs over the next six years to achieve its 82% renewables goal, saying it was not sustainable to source 99% of them with China, and that domestic capacity supplying around 20% would be ideal. The Australian Renewable Energy Agency is currently consulting on the design of the A$1 bln Solar Sunshot scheme designed to accelerate Australia’s domestic solar manufacturing capability.

Blue carbon programme – Aquaculture venture group Hatch Blue has teamed up with Japanese energy company Idemitsu to launch an initiative dedicated at advancing sustainable blue carbon solutions, according to a joint statement. The two-week programme, named Blue Carbon Innovation Studio, will support startups to scale up their marine-based solutions. The two companies will accept applications until the end of August and hold an event in Singapore around November.

Upcoming projects – Japanese project developer Green Carbon has formed a partnership with the Agriculture Science Institute of Northern Central Vietnam to generate carbon credits by introducing alternate wetting and drying (AWD) in the Southeast Asian country, it announced Thursday. The two parties are planning to start a project in Thanh Hoa Province, covering roughly 110,000 hectares of rice paddies. In a separate release, the developer said it is promoting a credit-generating mangrove planting initiative in Siargao Island, the Philippines. It has concluded a memorandum of agreement (MoA) with the local government to plant and conserve mangrove forests along the coast of the island (10,000 ha).

No, thanks! – Malaysia’s upcoming carbon capture, utilisation, and storage bill, expected to be tabled in the parliament before the end of 2024 will not be applicable to the state of Sarawak, the state’s environmental sustainability minister has said. The minister added that state laws should govern the development of CCUS locally. Sarawak passed the Land Code (Amendment) Bill 2022 and pursuant to the bill, no carbon storage sites can be developed, and no land can be used for storage of CO2 whether in onshore or offshore areas within the boundaries of Sarawak, without the approval of the state government. However, the minister added that the state government will remain committed to working collaboratively with the federal government on promoting CCUS, with due consultation and proper engagement, Malay Mail reported.

AMERICAS

Power plan pivot – The Edison Electric Insitute – which represents investor-owned electric companies in the US – has joined an ongoing series of challenges to the US EPA’s recently unveiled rule requiring power plants to substantially reduce emissions, including through the use of carbon capture and storage (CCS). Although the group said it would defend some elements of the EPA rules, it is challenged the controversial CCS provision in a lawsuit filed Wednesday. Politico reported that the move was an unusual one for the group, which generally stays neutral on rulemaking, as it has a diverse membership. Accordingly, not every member opposes the CCS rule, and California-based utility Pacific Gas & Electric intends to defend the rule, according to the outlet. Last week, a US federal appeals court denied requests for a short-term stay on the CCS rule, while a group of Democratic state attorneys general have filed suit to support the EPA in defending the rule.

Take it easy – The California Chamber of Commerce, Alliance for Automotive Innovation, and Truck and Engine Manufacturers Association joined several other state and national groups on Wednesday to propose amendments to Senate Bill 253, also known as the Climate Corporate Data Accountability Act, which requires large corporations operating in the state to disclose their GHG emissions. The business coalition contended that the regulation is too expensive and burdensome, particularly the requirement to report Scope 3 emissions. (E&E News)

Climate denial allegations mount– Democrat lawmakers Sheldon Whitehouse and House Oversight and Accountability ranking member Jamie Raskin requested the US Department of Justice to escalate their investigation into an alleged climate misinformation campaign perpetuated by oil giants ExxonMobil, Chevron, BP, and Shell, as well as the US Chamber of Commerce and the American Petroleum Institute, E&E News reported Wednesday. More than 20 states and local governments have also filed lawsuits against the oil industry seeking compensation for climate change, and supporters reason that a federal investigation could provide a powerful boost.

Expensive – Vermont Governor Phil Scott (R) vetoed a bill on Thursday that would have required utilities to source all renewable energy by 2035. H289 would have made Vermont the second state in the US to achieve 100% renewable electricity, which currently mandates utilities to buy 75% renewable energy by 2032. Gov. Scott stated that the bill would “raise Vermonters’ utility rates, likely by hundreds of millions of dollars.” Supporters of the bill, including Lieutenant Governor David Zuckerman (D), have defended that the cost of inaction is in the hundreds of millions of dollars, given the prior two summers experiencing extreme flooding. The Democrat-controlled Legislature could override the veto with a two-thirds majority during a special session in mid-June.

VOLUNTARY

Methodology consultation – Gold Standard has launched a public consultation for a methodology for reducing methane emissions from combustion engine exhausts. The standard said the methodology is intended to apply to activities that involve installation of equipment for reducing methane slip, i.e. methane that escapes unburnt from marine and land-based internal combustion engines using natural gas or other methane-rich fuel, including fuels derived from renewable sources. Accurate measurement is made possible by installing a piece of equipment in the exhaust gas stream, which includes instruments for measuring the concentration and flow rate of methane and other gases before and after its application, it added. Feedback will be accepted until June 20 at 1800 CET (1600 GMT).

Chemical brothers – ClimeCo has partnered with Tricon Energy to introduce a Supplier Incentive Program aimed at enhancing sustainability and transparency in the chemical value chain. The programme provides resources and incentives to help key suppliers calculate and disclose their product carbon footprint, which includes the total greenhouse gas emissions from producing a product. The initiative aims to improve the quality and transparency of climate-related data in the value chain, contributing to a more sustainable chemical industry. By participating, suppliers can access free resources to calculate their footprint, verify it, or find decarbonisation opportunities. This helps them reduce emissions, comply with regulations, and meet expectations from financial institutions analysing climate data.

INVESTMENT

CarbonX investment – Chinese tech company Tencent is extending 100 mln yuan ($13.9 mln) to carbon capture technologies in a move that extends its strategy beyond renewable energy and electric vehicles. The company’s CarbonX programme announced 13 first winners on Thursday that will receive financial and advisory support, each of which will collaborate with Tencent’s industry partners to test their solutions in real-world settings. The 13 projects Tencent is financing range from university research projects to early-stage start-ups with commercialisation potential and to companies that work on the infrastructure and methodologies of CCUS. These include startups converting CO2 into sustainable aviation fuel (SAF) and methods to use steel slag to capture and store CO2 directly from blast furnace exhausts.

AND FINALLY…

Risky waters – Drownings pose a significant risk for small-scale fishers on Africa’s largest lake, Lake Victoria, with many deaths linked to bad weather, which is expected to worsen due to climate change, a new study finds. Lake Victoria, shared by Kenya, Tanzania, and Uganda, is fished by approximately 200,000 fishers despite frequent severe thunderstorms, making it one of the most dangerous lakes globally. Researchers warn that by century’s end, thunderstorms, wind, and rain could become up to 10 times more frequent and intense, exacerbating the dangers. The study also highlights that overfishing has depleted commercial Nile perch populations, shifting the focus to sardine-like omena, which are fished offshore at night using lights. This shift increases fishers’ vulnerability to night-time thunderstorms and poor visibility, complicating rescue efforts. Economic pressures compel low and moderate-income fishers to venture out in poor weather to provide for their families. Surveying 43 landing sites on Lake Victoria’s Kenyan side, researchers found bad weather accounted for 42% of fatal drownings, with strong winds present in 47% of these cases, moderate winds in 22%, and heavy rain in 12%. To improve safety, the study suggests several strategies including enforcing life jacket and navigation equipment regulations, delivering weather warnings via mobile phones, and providing fishers with swimming and rescue training.

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