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TOP STORY
PREVIEW: South African elections see parties resist coal phaseout as development takes centre stage
South African voters head to the polls Wednesday amid energy shortages, a proposed carbon tax hike, and incoming international carbon tariffs, with the country’s three biggest parties open to adding new energies to the national mix but resistant to transitioning away from coal.
INTERNATIONAL
Singapore, Sweden strike deals with Ghana to trade Article 6 carbon credits
Ghana, a forerunner in developing Article 6 trade, has struck deals with Singapore and Sweden that will see sovereign carbon credits from the West African country fulfill climate obligations abroad.
Climate change takes backseat role as G7 finance ministers have focus elsewhere
G7 finance ministers and central banks met in Italy over the weekend, but with focus on issues like artificial intelligence and Ukraine there was little room for earnest talks on climate issues.
More economic growth when carbon tax revenues spent publicly instead of privately -study
Investing carbon tax revenues into public projects rather than returning them to taxpayers leads to greater economic growth, according to a report released on Monday.
EMEA
EU to be lenient with CBAM penalties during early phase, official says
The EU will not be too strict with companies during the transitional phase of CBAM and is looking into a possible WTO-compatible solution to promote exports of less carbon-intensive products made in Europe, a senior European Commission official told Carbon Pulse.
‘A different ball game’: ETS2 opens new risky chapter in EU climate policy, Polish minister says
With the current ETS focused on big industrial polluters, the EU has only played the “amateur league” of carbon pricing, and is now entering dangerous waters where climate policies start encroaching on private property and individual freedoms, warned Poland’s climate minister.
Greek shippers to face €1 bln European carbon bill, say analysts
Shipping firms based in Greece face EU ETS costs of €335 million this year, rising to €1 billion once the sector is fully integrated in the bloc’s carbon market, analysts said.
Energy transition leapt ahead in Europe over last five years, fresh data shows
The energy transition has massively expanded during the five-year term of European Commission President Ursula von der Leyen, with the share of renewables in the EU’s electricity sector jumping to 44% and investments in clean technologies more than tripling, according to fresh data published on Monday.
Women’s wellbeing at risk due to climate inaction with EU political shift, say advocates
Women’s fundamental rights and wellbeing are at risk due to inaction on the climate crisis across the European Union, a feminist and green group claimed last Tuesday.
Euro Markets: EUAs tick higher as gas correlation continues to dominate
European carbon prices rebounded on thin liquidity on Monday with strong German power and TTF gas movements feeding strength into the market, and tight auction supply this week also offering support.
Malawi finalises carbon trading regulatory framework, registers 11 projects -media
Malawi has finalised its carbon trading regulatory framework, according to media sources, and so far registered 11 projects following a government review into its market activity last year.
ASIA PACIFIC
China could see 2023 emissions peak if pace of renewable additions continues -report
Ensuring China’s CO2 emissions peaked in 2023 is feasible as long as the expansion of clean energy sources continues at the unprecedented rates observed last year, a report has found.
Malaysia launches non-market instrument to drive forestry funding
A Malaysian federal agency has launched a non-market instrument under its REDD+ programme to channel private sector funds for supporting forest conservation projects in the country.
NZ Climate Change Commission chair to retire
The chair of New Zealand’s Climate Change Commission (CCC), Rod Carr, has confirmed he will retire from his role at the end of his term later this year, the government has announced.
New Zealand utility to shut carbon, gas trading platform due to lack of interest
A New Zealand electricity company has announced it will close its gas and carbon trading platform later this year after consulting with staff and being unable to find an interested party to acquire them.
Pakistan PM rejects carbon tax proposal on fossil fuels
The prime minister of Pakistan has rejected a proposal of imposing carbon tax on fossil fuels, citing concerns that the tax may lead to high inflation affecting general public.
VOLUNTARY
VCM Report: Early voluntary carbon summer doldrums brightened by high bids for Article 6, some nature credits
The summer doldrums has arrived early in the voluntary carbon sector this year after another week of generally thin liquidity and sideway pricing, but pockets of high-priced trades for nature-based credits and early interest in Article 6-eligible units propped up optimism for the future.
New voluntary carbon credit platform announced in Iraq
A US-based global environmental asset authenticator, registry, and exchange announced its first Middle Eastern franchise in Iraq in partnership with the Iraqi branch of a Canadian carbon and energy advisory firm.
Brazilian bank opens auction for 1 mln Kyoto-era carbon credits through World Bank programme
A state-owned Brazilian financial institution is accepting bids for 1 million Certified Emissions Reductions (CERs) generated through a waste handling programme launched in 2012 with the support of the World Bank.
Environmental groups recommend social safeguards for Colombian REDD+ projects
A group of environmental NGOs outlined a set of policy recommendations for stakeholders and governance bodies in the safe and equitable implementation of REDD+ projects in Colombia’s voluntary carbon market (VCM).
AMERICAS
Supporters, critics of EPA heavy-duty vehicle rules take action in court
Over 20 states and a major auto manufacturer separately filed motions to intervene in a lawsuit against the US Environmental Protection Agency’s (EPA) heavy-duty vehicle emissions standards.
US CO2 pipeline developer accused of ignoring North Dakota landowners in ongoing permit hearing
A CO2 pipeline developer was accused of a lack of communication from landowners during a North Dakota Public Service Commission (PSC) hearing Friday, in its second attempt to secure construction permits, local media reported.
US Policy Roundup: Illinois advances regulation of carbon capture and storage
A carbon capture and storage (CCS) bill awaits Illinois Governor Jay Pritzker’s (D) signature to become law, and appears to have adopted language from a slew of CCS bills covering pore space ownership, emergency management, and sequestration fees.
Canadian oil and gas emissions intensity down 34%, GDP takes C$247 bln hit by 2035 from stringent emissions cap –report
A mandated 55% emissions cap for Canada’s oil and gas sector by 2035 would entail lower production and a C$247 billion hit to GDP, according to a study commissioned by a fossil fuel industry trade group.
BIODIVERSITY (FREE TO READ)
Non-profit drafts recommendations for enhancing Africa’s biodiversity credit markets
A Swiss-headquartered non-profit has released a set of recommendations to bolster Africa’s biodiversity credit markets, including setting minimum price floors for units and establishing an independent body tasked with determining project outcomes.
Declining biodiversity and increasing carbon caught in vicious loop, report says
Declining biodiversity will hit stored carbon stocks given an ecosystem’s ability to keep carbon out of the air is linked to its biological diversity, a paper published last week has found.
UK national park launches country’s first voluntary biodiversity credit scheme
The South Downs has become the first national park in the UK to establish a formal scheme for a voluntary biodiversity credit market, aiming to scale up private investments in nature recovery.
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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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Job listings this week
- *Head of Carbon Project Development (m/f/d) – Volkswagen ClimatePartner GmbH – Munich
- *Environmental Markets Correspondent, Carbon Pulse – Latin America
- Managing Director, BlueMX – Campeche/Nayarit/Mexico City
- Senior Policy Associate, Advanced Technologies, The Ad Hoc Group – Chicago/DC preferred, NYC/SF also available
- Growth Marketing Manager, Abatable – London
- Product Marketing Manager, Abatable – London (Hybrid)
- Product Designer, Abatable – London (Hybrid)
- Associate Programme Officer, NDC/LT-LEDS, Impacts Assessment Subdivision, UNFCCC – Bonn
- Programme Officer, P-3, NDC/LT-LEDS, Impacts Assessment Subdivision, UNFCCC – Bonn
- Carbon Policy Officer, Global Green Growth Institute Lao PDR (GGGI Lao PDR) – Vientiane
*Premium listings
See all listings or post a job
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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…
Argentina Carbon Forum – June 4-5, Buenos Aires: The Argentina Carbon Forum, a key initiative to strengthen carbon markets in the country, seeks to mobilise local actors and promote intensive climate action. This event opens doors for public-private sector organisations to leverage economic and environmental benefits by financing projects that mitigate climate change. It also offers business visibility, networking and access to valuable information, discussing issues such as markets and negotiations, implementation of emissions trading systems, and decarbonisation strategies. The Argentina Carbon Forum fosters collaboration and the development of innovative solutions for a sustainable future. Register here
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BITE-SIZED UPDATES FROM AROUND THE WORLD
EMEA
Efficiency at risk – Germany is at risk of missing its 2030 target for reducing final energy consumption unless it enhances its current energy policies, a report by Prognos for the DENEFF industry alliance indicates. The country is projected to achieve only a little over half the necessary reduction, needing an additional savings of nearly 300 TWh to meet the 26.5% reduction target from 2008 levels. DENEFF emphasised the critical need for mandatory energy efficiency measures in buildings, the public sector, and businesses to avoid making the energy transition more challenging and costly. The report also suggests extending EU energy standards to inefficient residential buildings and increasing the national carbon price to incentivise efficiency in transport and building sectors. Conversely, Germany is on track to nearly meet its primary energy consumption reduction target, primarily due to the expansion of wind and solar PV systems. (Clean Energy Wire)
Last step for the NZIA and Methane regulation – The bloc’s answer to the US’ IRA, the Net Zero Industry Act (NZIA) has been approved by the Council on Monday as a last step in the decision-making process. The regulation aims to boost the industrial deployment of net-zero technologies that are needed to achieve the EU’s climate goals. It will attempt to simplify the permit-granting process for strategic projects, facilitate market access and create a platform to coordinate EU action. It also sets an annual injection capacity of at least 50 million tonnes of CO2 to be achieved by 2030 in geological storage sites located in the EU. The regulation will now be published in the Official Journal of the European Union and will enter into force on the day of its publication. The Council also gave the final green light to the bloc’s methane regulation, which introduces new requirements on measuring, reporting and verifying methane emissions in the energy sector. Mitigation measures such as detecting and repairing methane leaks and limiting venting and flaring will aim to avoid methane emissions.
Carbon tracking of EU goods – The Council of EU member states gave the final green light on Monday to a new regulation making carbon tracking obligatory for companies selling products on the EU market. The Ecodesign for Sustainable Products Regulation (ESPR) aims to make goods use less resources, energy, and water throughout their entire lifecycle while making them easier to reuse, repair, and recycle. The European Parliament gave its approval on April 24, making the Council’s approval the last step in the procedure. The new regulation will enter into force on the 20th day following its publication in the Official Journal of the European Union and will start applying 2 years after. More details in our latest article here.
€3.2 billion for Czechia – The European Commission has approved a €3.2 billion Czech State aid scheme to support high-efficiency combined heat and power generation. The measure will contribute to Czechia’s National Energy and Climate Plan as well as the European Green Deal. The beneficiaries of the support are operators of new or modernised CHP installations in Czechia that meet the definition of high-efficiency cogeneration as set out in the Energy Efficiency Directive. The scheme is expected to bring around 9.3 million tonnes of CO2 savings per year.
ASIA PACIFIC
More rice – Carmaker Toyota has become the latest company to announce plans for investing in agricultural projects to generate J-Credits from reduced methane emissions. Sapporo Toyota Motor Corp. has teamed up with project developer Green Carbon as part of its strategy to meet voluntary emissions targets under the GX League.
Earning – Longyuan Carbon Asset Management, part of China’s state-owned Longyuan power group, made a profit of 40 mln yuan ($5.5 mln) from carbon credit sales in 2023, the company has announced.In total, the company recorded the sale of 210,000 Chinese Certified Emissions Reductions (CCERs) during the year, it said, and also provided international units to the State Energy group as part of effort to offset emissions from the 19th Asian Games, which were held in Hanghzhou.
Team up – Miners BHP and Rio Tinto have announced a collaboration to test large battery-electric haul truck technology in the Pilbara, Western Australia, to accelerate its potential rollout. The two companies in a statement said they would work with manufacturers Caterpillar and Komatsu to conduct independent trials of their battery-electric haul trucks, including testing of battery, static, and dynamic charging systems, to assess performance and productivity in the Pilbara environment. Two Cat 793 haul trucks will be trialled from the second half of this year, and two Komatsu 930 haul trucks will be tested from 2026, with outcomes shared between the companies. The collaboration reflects the companies’ commitments of net zero operational emissions by 2050.
Can we fix it? – Japanese firms Idemitsu Kosan, ENEOS, Toyota, and Mitsubishi have started a study for the introduction of carbon-neutral fuels for automobiles across the entire product life cycle, by 2030, the firms announced Monday. Together, the firms will investigate the feasibility of production from the perspective of energy security in Japan. Idemitsu Kosan is already seeking early introduction of carbon-neutral fuels with various companies within and outside Japan, while ENEOS is carrying out business development of synthetic fuels. Meanwhile, Toyota is working towards carbon neutrality by cutting down CO2 emissions of internal combustion engine vehicles. Lastly, Mitsubishi is working to build a CO2 and a hydrogen solutions ecosystem.
Off to Azerbaijan – India’s largest carbon offsetting project developer EKI Energy has signed an MoU with FARI Solutions, blockchain-based project developer headquartered in London, to advance carbon credit initiatives in Azerbaijan, EKI Energy announced Monday. Under the agreement, EKI will oversee the entire spectrum of processes related to conceptualizing, documenting, verifying, issuing, and trading of carbon credits. The partnership aims to foster development and expansion of business relationships in Azerbaijan. The agreement comes when Azerbaijan’s capital Baku is preparing itself to host this year’s climate summit COP29 in November.
AMERICAS
Passed clean – Illinois Senate Bill 3597 (SB 3597) that would allow local government to apply for loans through the Illinois Finance Authority (IFA) passed both legislative chambers on Friday. The IFA loans would be used to build, purchase, remodel, or improve clean energy infrastructure without proposal approval, if the loan is paid or provided for with funds that are not the proceeds of bonds authorised under the provisions. Last year, the IFA became a sub awardee of Inflation Reduction Act (IRA) funding, mobilising $256 mln for climate finance. Introduced on Feb. 9, the bill now awaits the signature of Democratic Governor Jay Pritzker to become state law.
Rule of law – The Office of the Ombudsman in Colombia and NGO Conservation International have signed an agreement to protect the collective rights of local communities in the voluntary carbon market (Caracol). The objective of the agreement is to promote clarity and transparency in the market through state regulation strengthening collective rights in environmental management schemes. The partnership will provide technical support to establish a system of petitions and complaints from vulnerable communities, which will be submitted to the Ombudsman and environment ministry.
Billions in BR – Brazilian energy firm Acelen Renewables looks to begin export of sustainable aviation fuel in 2027, said Yuri Orse, director of the company’s renewables chain, EPBR reported Monday. The company is investing more than $3 bln into the first phase of the project, including the cultivation of macauba, a native Brazilian plant with high oil content, ideal for the production of biofuels. It also eyes expansion of its investments to more than $13 bln to explore other carbon market opportunities, as well as biochar and green hydrogen.
Trillions for BR – Brazil has the potential for up to $3 trillion in investment opportunities for climate solutions, said Artur Ramos, executive director and partner at BCG during the Brazil Climate Summit Europe in Paris on Monday. Ramos said that Brazil must increase the share of private sector investment to achieve carbon neutrality, Exame reported.
Old-growth forests – A report by the province of British Columbia outlined its progress protecting old-growth forests was published Friday, but a number of environmental advocacy groups and First Nations remain disappointed with BC’s timelines for old-growth protection, CBC reported. In 2020, the province committed to deliver on 14 recommendations across mapping, monitoring, and deferring development of old forests. However, the Friday report details that it has implemented eight recommendations, and extended deadlines to deliver the remaining six. Advocacy groups say that more transparency is needed, as the last data available for 2022 shows over 160 soccer fields’ worth of old growth forests logged every day.
AND FINALLY…
Where the streets have no protesters – Ahead of the 2019 European Parliament elections, significant climate marches across Europe influenced a surge in green policies. Yet, as the 2024 elections near, such mass protests are notably absent. Experts and activists attribute this quiet to several factors. The focus of influential activists like Greta Thunberg on other global crises, such as the situation in Gaza, poses a dilemma: whether to address immediate human injustices or maintain a concentrated effort on climate issues, risking its decline from the political forefront. Moreover, the climate movement faces fragmentation as it intersects with broader political and security issues, challenging its previously unifying message. The once vibrant youth-driven climate activism has also waned, influenced by growing up, shifting priorities, and external factors like COVID-19 restrictions. Despite the current lull, experts believe climate activism will inevitably experience another resurgence, driven by ongoing climate-related disasters and moments of heightened public concern. This cyclical nature of protest movements suggests that while quiet now, the call for climate action will once again amplify. (Euractiv)
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