Presenting CP Daily, Carbon Pulse’s free newsletter. It’s a daily summary of our news plus bite-sized updates from around the world. Subscribe here
TOP STORY
US outlines policy priorities for development of voluntary carbon markets
Acknowledging the potential of voluntary carbon credits in supporting global decarbonisation efforts, the US issued on Tuesday a joint policy statement and associated integrity principles for stakeholders and the government to aid the development of the market.
EMEA
Swedes urge major rethink of EU green claims law to spur carbon removals
Stockholm Exergi, a Swedish firm that received €180 million from the EU to build the bloc’s first bioenergy with carbon capture and storage (BECCS) plant, says the EU’s green claims directive got off to the wrong foot, and suggests a way forward.
Livestock industry lobbied the EU to weaken climate policies -NGO
The meat and livestock industry has been using fossil fuel companies’ techniques to erode EU efforts to address rising emissions from the sector, according to a new report by a climate non-profit.
Euro Markets: EUAs slip back into recent trading range amid energy weakness
European carbon prices declined moderately on Tuesday, falling back into a recent trading range amid general weakness in the energy complex, further reinforcing the correlation between EUAs and natural gas prices even as the month neared its end and hedging of TTF options positions appeared to be over.
Ireland warns it will miss 2030 national, EU emissions cut goals
Ireland will fall short of meeting its national and EU greenhouse gas emissions reduction targets for 2030, even if it fully implements its entire suite of climate policies, the country has warned.
AMERICAS
RGGI compliance holdings outweigh emissions at end of Q1, report shows
RGGI compliance entities held allowances well in excess of their Q1 covered emissions at the end of March, according to a report published Tuesday.
RGGI Market: Traders frame positions ahead of Q2 allowance sale
RGGI Allowance (RGA) prices receded from recent record highs with market participants framing positions ahead of next week’s second quarterly auction for the year.
California bill on durable carbon removals faces greatest opposition from green groups, says senate aide
A California state senate bill on ‘durable’ carbon dioxide removals (CDR), initially passed in 2023 but currently in revisions after failing to obtain Democratic Governor Newsom’s approval, has faced its strongest opposition from environmentalists who favour nature-based CDR, according to the aide who authored it.
US DOE funds $1.2 mln across 24 carbon removal project developers
The US Department of Energy (DOE), which will ultimately purchase $35 million worth of carbon dioxide removal (CDR) credits from project developers, announced the 24 awardees selected in its first phase of funding on Tuesday.
ASIA PACIFIC
Australia’s major retirement funds remain too committed to fossil fuel-weighted investment -report
Activist shareholder group Market Forces, which was among those standing up to give Woodside Energy a black eye over its failed climate plans at its April annual general meeting, said Tuesday Australian superannuation funds have increased their exposure to fossil fuel companies despite net zero target dates of 2050.
NSW consulting on GHG emissions reporting, reduction requirements for new and expanding projects
The New South Wales’ Environmental Protection Agency (EPA) is currently consulting on stricter guides and requirements for new projects emitting large volumes of greenhouse gases.
INTERNATIONAL
INTERVIEW: Cookstove partnership targets countries offering Article 6 authorisation to roll out projects
A partnership between a clean cooking project developer and a carbon investor is prioritising countries that are ready to issue letters of authorisation (LOA) for the roll out of its new cookstoves, given the growing demand for Article 6-aligned credits.
VOLUNTARY
Project developer secures funding for large ARR project in South Africa
A carbon project developer has secured funding from a group of climate finance investors to fund the first phase of its ARR project in South Africa that can generate more than 30 million carbon credits during its lifetime, it announced Tuesday.
SBTN appoints external validator for corporate nature targets
The Science Based Targets Network (SBTN), a voluntary initiative for companies to set science-based targets related to their impacts on nature, has appointed an independent Accountability Accelerator to validate targets for an interim period of up to three years.
South Pole appoints former Lloyd’s of London chief as Chair of the Board
Giant voluntary carbon project developer and consultancy South Pole has appointed a former insurance heavyweight as the new chair of its board, with the move part of the Swiss-headquartered company’s business transformation plans.
US university partners with satellite monitoring start-up to scale up sustainable rice growing practices through carbon credits
A US university has teamed up with a climate tech start-up to launch an initiative that uses carbon credits to scale the adoption of sustainable rice production practices, while reducing methane emissions by 50%.
Investment in voluntary carbon market needs to triple to $90 bln, webinar hears
Investment in the voluntary market will need to treble by 2030 to meet the ramp up in demand from the corporate sector, a webinar heard Tuesday.
Lack of CO2 removal regulation in Global South restricts scale-up -research
A lack of carbon removal (CDR) regulation in emerging economies of the Global South is restricting the scale-up of new technologies, a research paper has found.
BIODIVERSITY (FREE TO READ)
A sixth of Malaysian rainforest seen to be under threat from deforestation
Malaysia has committed to protect 50% of its natural forests but deforestation is posing a serious threat to around 3.2 million hectares of its rainforests, a report released Tuesday has found.
UNDP, GEF launch $135-mln initiative to arrest environmental degradation in small island states
The UNDP and the Global Environment Facility (GEF) on Tuesday launched the Blue and Green Islands Integrated Program to scale up nature-based solutions in 15 Small Island Developing States (SIDS).
Irish forestry group to pilot biodiversity monitoring for corporate disclosures
Ireland’s largest private forestry management group is set to pilot a monitoring framework for measuring biodiversity gains on a replanting project, as it considers issuing biodiversity credits in the future.
EU Commission study proposes to add ecosystems’ economic value to GDP accounting
Economic policy assessments should incorporate the monetary value of the benefits that people derive from ecosystems, an EU Commission study has said, calling for establishing a separate indicator to complement the conventional gross domestic product (GDP).
Biodiversity Pulse: Tuesday May 28, 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).
—————————————————
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
—————————————————
WEBINAR
Surprises from analyzing over 500+ carbon projects – June 12th, 9AM BST: Join carbon market experts from Morgan Stanley, BCG, and Calyx Global as they discuss insights gained from evaluating carbon credit quality. The speakers will review the surprising project types with higher GHG integrity, due diligence best practices, and how to consider beyond carbon impacts. Learn what key factors play a critical role in assessing GHG integrity – helping you make more informed decisions. Register for the webinar here. You will receive an on-demand recording after the webinar if you register but cannot attend live.
—————————————————
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
—————————————————
Premium job listings
- Head of Carbon Project Development (m/f/d) – Volkswagen ClimatePartner GmbH – Munich
- Environmental Markets Correspondent, Carbon Pulse – Latin America
See all listings or post a job
—————————————————
BITE-SIZED UPDATES FROM AROUND THE WORLD
INTERNATIONAL
Island on board – The Republic of the Marshall Islands has endorsed the Fossil Fuel Non-Proliferation Treaty just before the UN International Conference on Small Island Developing States (SIDS4), making it the newest member. Initially formed by the nine member states during COP28 in Dubai, the coalition now has 13 members including Vanuatu, Tuvalu, Tonga, Fiji, the Solomon Islands, Niue, Antigua and Barbuda, Timor-Leste, Palau, Colombia, Samoa, and Nauru. With the accession of the Marshall Islands, the Fossil Fuel Treaty proposal has 12 out of the 39 SIDS nations on board. The treaty aims to meet the Paris Agreement goals by providing a global roadmap needed to halt the expansion of fossil fuels, manage an equitable phaseout of coal, oil and gas, and ensure a just energy transition.
Million credit baby – Approximately 150-180 mln Certified Emission Reductions (CERs) are yet to be issued under the UN Kyoto Protocol’s discontinued Clean Development Mechanism (CDM), according to an analysis by the UN Framework Convention on Climate Change secretariat published Tuesday. This corresponds to around 700-850 anticipated requests for issuance by 2025 or later from CDM projects monitored till Dec. 31, 2020. Assuming 750 requests, accounting for the $29.3 mln left in the CDM trust fund, and excluding the $45 mln held in a special reserve, the secretariat estimates a year-end balance of $3.7-12.8 mln by the end of CDM operations – depending on the year in which the last CER issuance request is received. In addition, there is an estimated $10 min liability related to potential withdrawal of project requests for registration, plus administrative and personnel expenses. These liabilities would likely need to be paid from the $45 mln reserve, the analysis said. However, for 750 issuance requests, a ‘share of proceeds’ from CDM project activities should also generate income to the tune of $20 mln, as a conservative estimate, it concluded.
EU inks critical minerals deal with Australia – The EU and Australia signed an MoU to cooperate on strategic minerals for the green and digital transition, the European Commission announced on Tuesday. “Australia is a like-minded partner and a global leader when it comes to critical raw materials,” said Commission vice-president Vladis Dombrovskis. “This partnership marks a major step forward in our efforts to secure a more sustainable supply of critical raw materials for the EU, whilst fostering investment in Australia,” he added. A roadmap will now be developed over the next six months to put the partnership into practice, the EU executive said.
G7+IETA – Starting last year, the G7 Presidency has asked emissions trading industry association IETA to partner with them around one of the G7 annual agenda items, the Carbon Market Platform (CMP) Strategic Dialogue. In light of this, IETA will host a G7 Carbon Market Roundtable & CMP Strategic Dialogue (CMP SD) event in Rome on Oct. 16-17. This political forum brings together G7, interested G20 and a number of G77 countries, and organisations to strengthen international co-operation in developing effective, sustainable, and ambitious carbon pricing approaches. This 9th edition will be jointly chaired by Japan and Italy, with analytical support from the OECD. The Dialogue will be hosted by the Italian Ministry of the Environment and Energy Security, in an in-person format.
EMEA
New lease on life – Romania plans to resume operations at the Otelu Rosu steel plant that has been idle since 2013, thanks to new investment by UMB of over €300 mln to restart the company. Construction company UMB Group purchased the plant for €12 mln in early 2024, with plans to use it to make the metal structures required for its construction activities. The plant is equipped with a 100-tonne electric arc furnace, which was last modernised in 2011. The plant’s design production capacity is 850,000 tonnes of steel per year. In 2022, Romania produced 2.6 mln tonnes of steel, compared to 3.3 mln tonnes in 2021 and 2.7 mln tonnes in 2020.
Actions speak louder… – Germany is drawing up an action plan for climate-neutral shipping, with the government bringing together representatives of the maritime sector, science, industrial, environmental associations, and federal and state leaders to draft a National Action Plan for Climate-Friendly Shipping (NAPS). The action plan is intended to include a roadmap for market ramp-up of climate-friendly marine propulsion systems and fuels, and to bundle and further develop funding programmes. The NAPS will deal with issues such as alternative propulsion and energy systems, the supply of climate-friendly energy sources, fleet modernisation, maritime industrial policy and green shipping corridors, said the government. The intention is for the plan to both support the sector in its green transition while strengthening the country’s competitiveness and innovation. A multi-stakeholder process is being held today in Berlin to kickstart the process and the government plans to finalise the plan in 1H 2025, said a government paper. (Clean Energy Wire)
More € for hydrogen – The European Commission has approved a fourth Important Project of Common European Interest (IPCEI) to support research, innovation and the first industrial deployment in the hydrogen value chain. The project, called IPCEI Hy2Move, was jointly prepared and notified by seven Member States: Estonia, France, Germany, Italy, Netherlands, Slovakia and Spain. As part of this 11 companies with activities in one or more Member States will undertake 13 projects.
Offshore wind job cuts – Shell is preparing to cut staff from its offshore wind business, mainly in Europe, with the layoffs to begin within months, Bloomberg reports. The move comes as CEO Wael Sawan moves the oil major away from the capital-intensive renewable energy sector as costs soar in the sector on the back of high interest rates and economic woes. Since Sawan took on the CEO role at the start of last year, he’s been pressurising business divisions to improve performance and profitability, with a plan to reduce “structural costs” by as much as $3 bln by the end of 2025. The staff cuts follow departures of a number of key executives in the offshore wind business, including Thomas Brostrom, the head of its European renewable power division and Melissa Read, the head of its UK offshore wind unit.
Partnership – Grupo EULEN and Anew Climate have inked an agreement to develop nature-based climate mitigation projects that will generate new carbon finance opportunities for large-scale forest landowners in Spain. “Leveraging Grupo EULEN’s regional operations and experience alongside Anew Climate’s decades of decarbonisation project development and marketing expertise, these new projects will help expand nature-based carbon emission reduction efforts within the European Union and contribute to Paris Agreement and Fit for 55 targets.”
ASIA PACIFIC
Platform – In China, Juno Capital and Digital Government have announced the launch of a digital platform for carbon sink monitoring and management, intended to strengthen the use of advanced digital technology in carbon offset management, including AI, GIS, remote sensing, and lidar. The announcement was made at the Digital China Summit, where Juno Capital on stage signed framework agreements with more than 10 partners on the use of the new platform, it said.
Blowing smoke – Japanese automakers Toyota, Subaru, and Mazda have each committed to developing new engines tailored to electrification and carbon neutrality, according to a joint press statement. While the companies said they would look to optimise integration with motors, batteries, and other electric drive units, they also said they would make ICEs more compatible with various carbon-neutral fuels such as e-fuels, hydrogen, and biofuels, as the companies say they have a “deep understanding of their customers’ diverse lifestyles”.
Swap with credits – Singapore-based OUE Real Estate Investment Trust (REIT) has made its first interest rate swap with a set of voluntary carbon credits with Oversea-Chinese Banking Corporation (OCBC), sourced by the OCBC’s Emissions Trading Desk, The Edge Singapore reported. The trust made a structured derivative transaction and received a fixed amount of voluntary carbon credits that will contribute towards investing in a carbon reduction nature-based project, certified by Verra, in the Southeast Asian region. OUE REIT said that the carbon credits received in this transaction will be used to offset OUE REIT’s residual emissions, the media outlet added.
AMERICAS
Greener ammonia – Hanwha Corp. is partnering with INEOS Nitriles on a study for a low-carbon ammonia facility with carbon sequestration in the US, with capacity of more than 1 Mt/yr, the partners announced today. A final investment decision is expected for 2026 with planned commercial operation in 2030. The location of the plant is still to be decided.
Feedback welcome – The US Department of Agriculture (USDA) issued on Tuesday a request for information (ROI) on protocols for inclusion in its new Greenhouse Gas Technical Assistance Provider and Third-Party Verifier Program – components of the Growing Climate Solutions Act, which is part of the Consolidated Appropriations Act of 2023. Information will be used to prepare the proposed rule to establish the scheme. The new programme would facilitate technical assistance by providing a list of qualified technical assistance providers and third-party verifiers to generate “reliable carbon credits”, the agency said in a press release. The USDA would also evaluate widely accepted offset protocols to ensure consistency, reliability, effectiveness, efficiency, and transparency. Public comments can be submitted for 30 days from May 29, when the agency will publish the ROI in the federal register.
Playing neutral – The board of directors of trade group the Association of Washington Business voted to remain neutral on Ballot Initiative 2117 (I-2117) that seeks to repeal the state’s Climate Commitment Act which limits GHG emissions via a cap-and-trade programme, a media outlet reported Tuesday. The board was more circumspect of the programme, noting that their members “overwhelmingly agree the Climate Commitment Act has challenges and needs reform”, but acknowledged that there was a range of opinion about whether it would be better to repeal the programme or continue to address the issues with the existing programmes, the association’s president Kris Johnson was reported as saying. [The Center Square]
Cow carbon cutting – The US Food and Drug Administration (FDA) has approved methane-reducing feed supplement Bovaer, reported the Dairy Reporter. Produced by dsm-firmenich and distributed in North America by Elanco Animal Health, the supplement works by suppressing the enzyme in the cow’s rumen that forms methane, reducing emissions by 30% and is expected now to be launched in Q3 2024. Reducing enteric methane emissions has been a key challenge for the global dairy industry, as methane lasts about a decade in the atmosphere and is 27 times more potent than CO2 at trapping heat, the outlet reported. Bovaer’s active ingredient was approved by the Canadian Food Inspection Agency earlier this year, and climate consultancy turned project developer WayCarbon is also leading a project to administer Bovaer to between 2,000 and 2,500 cows on multiple dairy farms in Brazil.
Canadian correction – The Parliamentary Budget Office (PBO) should have “gone to greater lengths” to ensure the public was notified of its carbon price analysis error, said Ryan Turnbull, Liberal MP and parliamentary secretary for Canadian Finance Minister Chrystia Freeland, the Canadian Press reported. The non-partisan PBO published a note on its website on Apr. 17, which stated that its 2022 and 2023 economic analysis of Canada’s consumer carbon price mistakenly included the impact of the industrial carbon price. The original analyses claimed that while most families would receive more from rebates than paid in carbon pricing, those benefits would be erased once the impact on job growth and incomes was factored in. Turnbull said the mistake and limited public notification was “deeply unfortunate” given recent circulation of misinformation on Canadian carbon pricing.
VOLUNTARY
Increased ambition – The Science Based Targets initiative (SBTi) has unveiled a suite of revisions and new resources to enable financial institutions (FIs) to set ambitious near-term emissions reduction goals, including an increase in ambition from well below 2C to 1.5C for Scope 1 and 2 to align with the SBTi Corporate Net-Zero Standard. In addition, the revisions include an introduction of fossil fuel finance criteria to disclose, halt, and phase out fossil fuel-related activities, and overall improvements for usability and clarity. The primary resource released is the Financial Institutions’ Near-Term Criteria Version 2.0 (FINT Criteria V2), which will come into effect as of Nov. 30, 2024. All FIs that submit targets before this date can choose to be assessed against either FINT Criteria V2 or the Criteria and Recommendations for Financial Institutions Version 1.1. Further detail here.
AND FINALLY…
My local net zero – Zero Carbon Forum, a membership-based non-profit focused on sustainability in the hospitality industry, has launched what it claims is a first-of-its-kind Corporate Carbon Calculator designed specifically for large brewing and hospitality organisations in the UK. Already rolled out by Greene King pubs, the calculator operators can now review and measure the carbon data of their supply chain, both site-by-site and as an aggregate, across scopes 1 to 3. Mark Chapman, founder and CEO at Zero Carbon Forum said: “It’s a game-changing footprinting tool that provides clear and concise guidance and a user-friendly interface to measure emissions and engage site operators in swift, credible climate action.”
Got a tip? How about some feedback? Email us at news@carbon-pulse.com
