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
Zimbabwe’s Kariba REDD+ to receive carbon credits under another standard following Verra withdrawal
Zimbabwe’s giant Kariba REDD+ project is set to receive carbon credits via another standards body after its owner withdrew it from Verra’s VCS programme amid protests about a protracted investigation.
VOLUNTARY
DATA DIVE: Shell’s dominance of the voluntary carbon market drives retirements surge
Anglo-Dutch oil major Shell has dominated the voluntary carbon market (VCM) over the past six months, retiring 14% – or one seventh – of all credits retired between Nov. 2023 and April 2024, Carbon Pulse analysis has shown.
Canadian carbon project financier planning C$200 mln pipeline of nature-based carbon offset investments
A Toronto-based carbon and precious metals royalty and streaming company announced first quarter results for 2024 on Wednesday, with portfolio updates on their offset joint venture interests and a C$200 million ($146 mln) investment pipeline in nature-based offset projects.
INTERNATIONAL
Rich countries surpassed $100 bln climate finance pledge in 2022, OECD confirms
Developed countries finally surpassed the target of providing $100 billion annually in climate finance for developing countries in 2022, two years after the original deadline, according to a new climate finance assessment from the OECD.
EMEA
IMF highlights energy security gains from EU climate action, issues warning on Eastern Europe
The International Monetary Fund (IMF) issued a new paper on Tuesday arguing that climate action delivers “sizable energy security benefits” for Europe while highlighting risks related to carbon pricing policies in coal-reliant Eastern EU countries.
German cabinet approves bill to expand carbon capture, develop pipelines
Germany approved a draft bill Wednesday allowing carbon capture and storage (CCS) for emissions-intensive industries that cannot be electrified, excluding coal-fired power plants, and also plans to create a legal framework to develop carbon pipeline infrastructure.
Europe can remove 300 mln tonnes of CO2 per year by leaving old forests alone, finds study
Europe can remove around 300 million tonnes of CO2 a year by simply protecting, restoring, and encouraging growth in its old forests, a new study has found.
Brexit reduces EU ETS-liable distances for North Atlantic shipping routes by 24% -analysts
Brexit has reduced EU ETS-reportable sailing distances by liner services on the North Atlantic by 24% relative to a scenario in which the UK had stayed in the bloc, Danish shipping analysts have estimated.
Euro Markets: EUAs drift towards key technical level as funds slash short positions
European carbon prices drifted slightly on Wednesday and approached a key technical support as the market digested the latest Commitment of Traders data that showed investment funds had cut their net short position to the lowest in seven months, while compliance companies slashed their short positions.
UNFCCC assesses DRC REDD+ emissions reporting as ‘partially’ accurate
Experts at the UNFCCC assessing a REDD+ submission from the Democratic Republic of the Congo (DRC), found that the country’s emissions reporting was “partially transparent and partially consistent” with expected standards, identifying areas for capacity-building and future technical improvement.
Scotland gears up on climate adaptation with support for economy-wide measures, says official
Extra funding for flood defences and a network of climate action hubs are among the Scottish government’s response to the urgent need for adaptation to warming temperatures, with the country experiencing hotter summers and more coastal erosion, said a government representative on a webinar.
AMERICAS
LATAM Roundup: Article 6 heats up and compliance systems seek certifiers in South America
Carbon Pulse rounds up May’s developments in Latin American and Caribbean carbon markets, seeing South American countries push forward under Article 6 bilateral agreements, compliance carbon pricing systems broaden their base of certification schemes, and new announcements of large-scale nature-based projects.
ASIA PACIFIC
Australian investors remain determined to act on climate thanks in part to policy certainty, survey finds
Policy work by Australian state and federal governments has allowed investors to be more confident to spend cash on climate solutions in the country, a survey released Thursday found, despite global economic headwinds and a perceived lack of investment opportunities in the country.
Philippines government partners with developer, bamboo company for large-scale reforestation to earn carbon credits
The Philippine government and a French land-based carbon project developer signed an agreement Wednesday to restore 90,000 hectares of degraded forest in the northwest of Samar Island’s natural park, in partnership with a local bamboo firm.
BIODIVERSITY (FREE TO READ)
China sets up $210-mln biodiversity fund for developing nations
China has launched the Kunming Biodiversity Fund, with the signing of the new venture witnessed by Chinese environmental officials and UN agencies this week after first establishing the framework over two years ago.
Australia business, environmental groups dunk on govt’s new environment legislation
The federal government on Wednesday introduced legislation to establish national environmental watchdog and information gathering bodies, but the move has been criticised by business and environmental groups alike, highlighting deep divisions in Australia’s nature reform space.
Marine protected areas fail to protect seafloor biodiversity activity, study says
Conservation efforts have largely failed to protect seafloor invertebrate animals, including worms, clams, and shrimps, which play a critical role in mediating the health of the ocean, a paper has said.
Forestry investor prepares African portfolio for biodiversity credits
Australia-headquartered asset manager New Forests is preparing to potentially generate biodiversity credits by gathering nature metrics across 37,800 hectares in three African countries, Carbon Pulse has learned.
—————————————————
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
EMEA
Cutting the cord – Germany and the Czech Republic are pushing the EU to hold regular high-level talks on how to eliminate the remaining energy sources that Europe imports from Russia, EU diplomats told Reuters, as reported by Euractiv. The EU has rapidly replaced Russian fuel with renewable energy and gas from other suppliers since the country launched its invasion of Ukraine in Feb. 2022 but the bloc still sourced 15% of its gas from Russia last year and some EU countries wish to keep Russia on as a supplier. Russia sent more than 15.6 Mt of Russian LNG to EU ports last year, according to data analytics firm Kpler, a 37.7% jump compared to 2021. On Thursday, a meeting between EU country energy ministers will discuss the obstacles in phasing out Russian energy imports, and Berlin and Prague will make their request during that time, say diplomats. Brussels aims to EU reliance on Russian energy by 2027.
Economic tipping point – Low-emission cement and steel production is set to become cheaper than its counterparts produced with fossil fuels by 2045, according to the Office of Technology Assessment at the German Bundestag (TAB). Its report says that prices for green steel and low-emissions cement would rise before the end of the 2020s, before reaching cost parity in the mid-2030s and becoming cheaper than conventionally produced alternatives by 2045. Though climate-friendly chemicals will remain permanently more expensive, it estimates. In 2023, 155 Mt of CO2 equivalents came from the industrial sector in Germany – over a fifth of the country’s total emissions that year. The production of steel, cement, and basic chemicals accounted for over 40% of industrial GHG. Cumulative additional investments worth almost €15 bln are needed to switch to low-emission technologies, including carbon capture, usage and storage, the report found. (Clean Energy Wire)
SAF supply – Swiss fuel supplier Titan Aviation Fuels International has added five new locations in Spain to its European distribution network for sustainable aviation fuel (SAF). Customers flying from Madrid, Barcelona, Palma, Malaga, and Seville airports will now have access to SAF produced by Spanish fuel producer Cepsa. The EU has embraced SAF to decarbonise the aviation sector, approving a RefuelEU aviation law in 2023 as part of the bloc’s Fit for 55 climate policy package, which would kickstart investment in the lower-carbon alternative fuels. But in 2020, less than 0.05% of total jet fuel demand in the EU was supplied by SAF, indicating that a major ramp-up is required to meet the 5% blending target by 2030 for all flights departing from EU airports. Currently, the maximum potential SAF production capacity in the EU is estimated to be around 0.24 Mt. This is only 10% of the amount required to meet the proposed mandate by 2030, according to the EU Aviation Safety Agency (EASA).
Forced to pay up – Warsaw faces EU fines of €68 mln over the continued operation of the Turow coal mine despite court orders to the contrary, the EU’s lower court ruled on Wednesday. In 2021, Warsaw was ordered by the European Commission to close down the controversial Turow open-cast coal mine in the German-Czech-Polish border region, due to detrimental impact on Czech groundwater levels. Yet when the government failed to comply, fines of €500,000 per day were deducted from EU funds earmarked for Poland. Warsaw and Prague settled the case in Feb. 2022, and Poland then sought to retroactively cancel the fine accumulated to a level of €68.5 mln, by moving for annulment in the EU’s lower chamber court. Yet today the court ruled that “the removal of the case from the register does not relieve Poland of the obligation to settle the amount payable”. The accumulated fines cannot be annulled because otherwise they would lose their deterrence effect, the court found. (Euractiv)
Vote loser or winner? – Whether or not Prime Minister Rishi Sunak’s move to talk down net zero will be a serious vote loser in the upcoming UK election, or will cannily improve his chances of staying in power by aligning the Conservatives with a green backlash that threatens to weaken climate progress, is yet to be seen, though the signs so far are not so promising. Sunak’s roll-back of green policies last September, such as delaying plans to end sales of new petrol cars and phase out gas boilers, are dissuading to younger voters while older Tory supporters are not so concerned, according to a polling analyst. However, if Sunak does end up proving it pays to weaken net zero policies, it will be a terrible setback for a party that has long shown climate leadership, writes the FT.
ASIA PACIFIC
Hand-outs – French energy company Engie is offering A$1,000 ($665) energy bill rebates to a wider circle of households near its wind and solar projects in Australia, Renew Economy reports. The deal will be offered to locals who are not just next door to a renewable energy project, but who are also likely to feel the consequences of it, such as through higher traffic volumes or visual sightlines. Beneficiaries do not need to sign up with Engie as their energy retailer to get the discount, the company said in a statement. A company spokesperson said the idea came about through engagement with the community of Hay, NSW, where it is building a 1.9 GW wind and solar project. The community wanted direct, tangible benefits, rather than the usual community fund for local sports facilities.
Energy cooperation – On the sidelines of a state visit by UAE president Sheikh Mohamed bin Zayed Al Nahyan to South Korea the two nations promised to strengthen cooperation across four areas, which include energy. Traditional energy, clean energy, and what the Korean press called ‘peaceful nuclear energy’ are the focuses. The UAE’s sovereign wealth fund is looking at investment opportunities worth $6 bln. Korean companies will build six LNG ships, and the nations will cooperate on increased crude oil storage, and they signed a memorandum of understanding to establish a support system for hydrogen cooperation.
ASEAN Power Grid – The Singapore Ministry of Trade and Industry (MTI), Lao PDR Ministry of Energy and Mines (MEM), and the Cambodian Ministry of Mines and Energy (MME) have established a working group to drive cross-border electricity trading as part of the wider ASEAN Power Grid Vision, the MTI said Wednesday. Lao already exports a large amount of the hydropower-derived electricity it produces, to Thailand and China in particular. The relevant governments said they hoped the initiative would also drive renewable energy uptake in their jurisdictions so all can reach net zero.
AMERICAS
IRA updates – The Biden Administration proposed new eligibility for its clean energy tax credits under the Inflation Reduction Act on Wednesday, as it considers CCS eligibility, reported E&E News. Existing tax credits have boosted clean energy generation via wind and solar, but the proposed update to 45Y and 48E credits involves other low-carbon technologies such as nuclear, geothermal, and hydropower eligible. Notably, the Treasury Department is seeking comment on other projects such as bioenergy with carbon capture and storage.
EPA stay motion – The National Mining Association and America’s power – a coal industry lobbying group – filed Friday a request to stay US EPA power plant standards finalised in April. The move piles on to a series of ongoing challenges to the controversial power sector regulation. The same court where the motion was filed – the US Court of Appeals for the District of Columbia Circuit – has already rejected another request for an immediate stay, but is still considering a motion for a longer-term stay. In February, the Supreme Court heard oral arguments in the case of Ohio v. EPA, which legal experts told Carbon Pulse could stifle federal environmental efforts by inviting stay motions that could effectively halt the implementation of regulations for years while litigation took place.
LA CCS – Louisiana’s most comprehensive CCS bill passed the House for concurrence on a 94-0 vote on Wednesday, and now heads to Gov. Jeff Landry (R) to be signed 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.
Never again – US District Judge Mark Pittman for the northern district of Texas ruled that activist investor Arjuna Capital’s revised letter to oil giant ExxonMobil seemed to ensure that they would not resurface their shareholder advocacy calls for stronger climate targets in an identical form or a substantially similar form, E&E news reported Wednesday. The activist investor’s previous letter did not give the courts a similar assurance, the judge said, ordering ExxonMobil to file an expedited brief on or before May 31 of 15 pages or less explaining any contentions they had regarding their standing after Arjuna Capital’s latest letter. Thereafter, Arjuna Capital could submit a reply brief of six pages or less on or before June 5, if it wished to do so, the court order detailed. Exxon had sued Arjuna Capital and Dutch firm Follow This earlier this year after the groups called on the oil firm to tighten its GHG reduction goals. The shareholders had dropped their resolutions shortly after the case was filed, but the oil firm insisted on moving ahead with the lawsuit reasoning that the groups could return with similar motions in the future. Last week Judge Pittman dismissed a motion from Arjuna to halt the lawsuit, but granted Follow This’ request for the same citing the absence of jurisdictional authority over the Netherlands-based group.
VOLUNTARY
Stamp of approval – Riverse is the latest standard to receive endorsement by ICROA (The International Carbon Reduction and Offset Alliance), it was announced today. Focused on technology-based, circular economy projects in Europe, Riverse issues carbon credits from projects located close to buyers’ value chains and geography. Other standards to be approved by ICROA so far include Verra, Gold Standard, ACR, Plan Vivo, Climate Action Reserve, ART, and Cercarbono.
Money from trees – Manulife Financial’s asset management arm has found success in investing in timber, amassing over $16 bln in timberland and agricultural assets across various countries, Bloomberg reports. This alternative investment strategy, it said, helps diversify portfolios and matches the long-term liabilities of life-insurance policies. Revenue is generated not only from timber sales but also from activities such as carbon-offset credits and renting land. Despite potential price fluctuations, the long-term returns on timberland investments have been promising. Other major asset managers are also exploring timber investments, with some focusing on carbon sequestration initiatives. Manulife places emphasis on sustainability and credibility in managing its forestry assets, including hiring its own teams and using third-party certification programs. Besides institutional clients, Manulife also holds timber and agricultural assets in its own general fund. Additionally, the company generates revenue by participating in conservation efforts, such as relocating endangered species like the gopher tortoise in Florida.
INVESTMENT
New backers – Chloris Geospatial, a company specialising in measuring forest carbon from space, has received investment from the Cisco Foundation and NextSTEP, joining previous backers like AXA IM Alts and Orbia Ventures. This funding will help advance Chloris’ mission of supporting forest conservation and restoration – key strategies against climate change and biodiversity crises, and essential for achieving net-zero emissions by 2050. The company’s technology uses earth observation data, proprietary sensor fusion, and machine learning to produce accurate annual biomass and forest carbon stock assessments. This enables various stakeholders, including governments and local communities, to monitor deforestation, degradation, and tree growth effectively.
AND FINALLY…
SUV sorrow – SUVs are setting new sales records each year, and subsequently so are their emissions, according to the IEA. SUVs – the large, heavy passenger vehicles – accounted for 48% of global car sales in 2023, and constituted the majority in advanced economies for the first time, the agency said. As a result, they were responsible for over 20% of the growth in energy-related CO2 emissions last year. Additionally, if the category of car were its own country, it would be the world’s fifth largest emitter of CO2, the agency found. Some countries – such as France, Norway, and Ireland – are designing frameworks to reign in SUV demand.
Got a tip? How about some feedback? Email us at news@carbon-pulse.com
