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EU ELECTIONS
Parliament lurches to the right as 2019 ‘Green wave’ recedes
The European Parliament elections delivered their verdict on Sunday evening, with hardline conservatives and the far-right making gains as expected, leaving the Greens and nationalist groups as potential kingmakers during open-ended talks opening now to form a new EU executive.
ANALYSIS: Is undoing the European Green Deal actually feasible?
During the European Parliament election campaign, some candidates from conservative and far-right groups have vowed to dismantle the Green Deal and related EU climate legislation. However, undoing five years of legislative work won’t be that simple, analysts say.
INTERNATIONAL
BRIEFING: Mood calm in Bonn as Article 6 negotiators appear to have put Dubai chaos behind them
Article 6 negotiators look to be making progress on the technicalities of international carbon trade rules during a crucial UN climate conference in Bonn this week and next, with observers describing the mood in talks as constructive and certain factions appearing open to compromise on key sticking points.
New Paris pledges could triple emission reductions, if they reflect existing technologies, goals
Governments could put the world on track to nearly triple emission reductions by 2035 compared to the current trajectory, if their updated Paris Agreement pledges take in account current technological progress, existing national policies, and the commitments made in Dubai last year, according to research published on Monday.
FEATURE: Outlook rosy for carbon investment with climate tech seen resilient to macro headwinds
Investors and startups in carbon and clean tech have offered an optimistic near-term outlook for funding in the sector, despite the persistent macroeconomic challenges that hindered global venture capital flows last year.
EMEA
UK ETS verified emissions drop 12.5% in 2023, driven by steep fall from power sector
Verified emissions in the UK ETS fell by 12.5% in 2023, the government announced late Friday, with the decrease in output driven by a steep fall in emissions from power generation, even as output from aviation rose for the third successive year.
DATA DIVE: The EU’s achievements on climate and energy in 2019-2024
Despite unexpected external events – from Covid-19 to the war in Ukraine – the EU stayed the course on climate action during the past five years, delivering steeper-than-ever reductions in CO2 emisssions while ramping up the deployment of renewables and other clean technologies to meet its climate goals.
UK’s CBAM likely to push up cost of imported products made with electricity -study
UK imports of products made with electricity – such as aluminium and steel – could become more expensive when the country introduces its carbon border adjustment mechanism, even though its coverage is limited to indirect power emissions rather than direct power imports, according to new analysis by the London Stock Exchange Group (LSEG).
UK falling 18 years behind on wind power targets, due to lagging manufacturing
The UK is on track to miss its 2030 target for offshore wind power generation by 18 years and needs to triple its installation rate in order to catch up, according to research published on Friday.
Gaza war emissions above those in many countries -study
The emissions from the war in Gaza are still higher than the annual GHG output of tens of countries, according to a study published Friday.
EU, UK falling far behind clean hydrogen targets for 2030, study finds
Current commitments for low-carbon hydrogen production in the EU and UK are nowhere near enough to hit their stated 2030 goals, a think-tank has warned.
Euro Markets: EUAs and energy move in narrow ranges as activity calms, while UKAs shrink discount
European carbon and energy prices remained in a narrow trading range on Friday as activity across all markets appeared to diminish, with EUAs moving between the key June call options strike prices and are expected to continue to do so in the short term, while UKAs climbed to their smallest discount to the EU benchmark in 15 months.
AMERICAS
RGGI sets new record settlement at Q2 auction, beyond market expectations
The Q2 RGGI auction cleared at a new all-time high beyond market expectations, with compliance winning more than a three-fourth share of permits offered in the sale, results posted Friday showed.
Dominion approved to withdraw RGGI rider after Virginia’s exit from scheme
A Virginia state regulator granted utility Dominion Energy’s request to withdraw a RGGI rider reinstated last year to recoup programme costs following the state’s withdrawal from the Northeast carbon market at the end of 2023.
Speculators take advantage of price rout in CCAs
Speculators were the only group buying California Carbon Allowances (CCAs), while traders reduced net length across the rest of North American carbon markets as prices in the secondary market retraced, according to weekly data from the US Commodity Futures Trading Commission (CFTC).
Climate superfund legislation passes New York legislature, awaits governor’s signature
The New York State assembly passed Friday a bill establishing a climate change adaptation fund to be financed by fossil fuel companies, which now awaits Governor Kathy Hochul’s (D) signature to become law.
ASIA PACIFIC
Australian opposition signals intention to quit the Paris Agreement
The Australian opposition Coalition have declared it will get rid of the country’s 2030 emissions reduction target, arguing the goal is unachievable, and by extension withdraw from the UN’s Paris Agreement if it wins the next election.
AU Market: Forward volumes surge to record levels in May, analysis shows
While Australian carbon prices were relatively range bound in May, there was a record increase in credits traded under derivative contracts such as forward and options, according to analysts.
Australia massively revises up its land sector carbon sink
Australia’s GHG emissions failed to budge in the December quarter, according to recently published figures, however a significant recalculation in the country’s land use, land use change, and forestry (LULUCF) category sparked concerns from experts.
Australia’s AgriProve issued 9,000 ACCUs from soil carbon projects
Soil carbon developer AgriProve has been issued over 9,000 Australian Carbon Credit Units (ACCUs), generated at two of its projects in Queensland.
South Korea, Indonesia sign Article 6 deal
South Korea and Indonesia have signed a Memorandum of Understanding (MoU) on the implementation of projects under Article 6 of the Paris Agreement.
Conglomerate, developer to offer insurance for forestry-based J-Credits
One of Japan’s biggest conglomerates has teamed up with a developer to offer a compensation insurance arrangement for forestry J-Credit projects in case of natural disasters.
CN Markets: CEAs stable with healthier trading volumes amid renewed expectation on sectoral coverage
CO2 allowance prices in China’s national emissions market increased slightly over the past week amid sustained liquidity, with participants remaining eager to learn whether the sectoral expansion plan will be rolled out later this year.
VOLUNTARY
$150 per tonne is the ‘ultimate’ price that direct air capture can achieve, says industry CEO
A price between $150 and $200 per tonne should be the “ultimate” cost goal for the direct air capture (DAC) industry, according to the CEO of a large developer.
Voluntary carbon credit rating agencies find fault in CCP-tagged credits
Voluntary carbon market rating agencies have called into question whether some credits deemed eligible to be tagged with the Core Carbon Principles (CCP) high-integrity label by the ICVCM can actually deliver a tonne of CO2 avoidance or removal, a key principle of the cross-stakeholder initiative.
Renoster launches open-access geospatial database of nature-based offset projects
Ratings service Renoster has launched an open-access database containing detailed geospatial boundaries of 575 nature-based carbon projects, aiming to enhance the transparency and accountability of offsetting efforts globally.
BIODIVERSITY (FREE TO READ)
INTERVIEW: Biodiversity space isn’t ready for AI due to data gaps, expert says
The biodiversity data gap must be closed before we start talking about using artificial intelligence (AI) in conservation work, as we don’t have the infrastructure for training the machine-learning models yet, a data expert told Carbon Pulse.
MSCI launches biodiversity footprinting tool
A tool for investors to measure the biodiversity impacts of investments, initially using the Potentially Disappeared Fraction of species metric (PDF), has been launched by New York-based investment research company MSCI.
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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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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.
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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…
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Premium job listings
- Carbon Sales Manager, BioLite – Remote
- Manager, Market Strategy & Engagement, Native – Remote (US)
- 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
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BITE-SIZED UPDATES FROM AROUND THE WORLD
INTERNATIONAL
Monopoly taxes – Financial taxes on defence, technology, and fashion companies in developed countries could contribute to the $1.1 trillion a year needed by poorer nations to curb emissions, adapt to climate change, and deal with the damage it causes, according to an unpublished paper by the G77+China. Rich countries would “only” need to spend 0.8% of their GDP per year to raise $441 bln, which would mobilise enough private finance to reach $1.1 trillion a year, said the paper. The raising of $441 bln could come from a financial transaction tax, as well as taxes on the sales of prosperous companies in defence, tech, and fashion, it suggests. About $57 bln a year could be raised from a 5% tax on the annual sales of the top seven technology firms, about $34 bln a year from a 5% tax on the annual sales of the roughly 80 top fashion firms, and around $21 bln a year could come from a 5% tax on the annual sales of the top 80 defense firms, said the paper. (Climate Home News)
COP truce – COP29 host Azerbaijan is aiming to shield the annual talks from geopolitical tensions by proposing a two-week COP truce. Inspired by the Olympic truce, the initiative aims to unite countries in a collaborative effort to address the pressing nature of climate change. Hikmet Hajiyev, foreign policy adviser to Azerbaijan President Ilham Aliyev, highlighted the current global geopolitical polarization as reminiscent of the Cold War era, making consensus-building on climate action challenging.
EMEA
Right direction – Norway’s GHG emissions in 2023 stood at 46.6 MtCO2e, according to preliminary numbers from Statistics Norway, a drop of 4.7% or 2.3 Mt from the year before. Climate policy measures directed at road transport and the oil and gas industry as well as lower industrial activity were identified as the main drivers of the drop. Norway’s emissions are down by 9.1% since 1990, but it has committed to reduce emissions to at least 50% below that baseline by 2030, while striving for 55%.
Nigeria news – President Bola Tinubu of Nigeria has appointed Dr. Nkiruka Maduekwe, a 39-year-old lawyer and climate policy expert, as the interim Director-General/CEO of the National Council on Climate Change (NCCC). Maduekwe is set to spearhead Nigeria’s ambitions for green industrial development and sustainable economic growth. Her confirmation is pending approval by the NCCC Supervisory Council. In her new role, Maduekwe replaces Salisu Dahiru and brings over 15 years of experience in climate policy and implementation on both national and international fronts. Additionally, Tinubu has directed the Special Envoy on Climate Action, Ajuri Ngelale, to oversee all climate-related engagements and negotiations. Ngelale will also supervise the Energy Transition Office and integrate the work of the Intergovernmental Committee on National Carbon Market Activation Plan into Nigeria’s climate action strategies. Tinubu also announced the expansion of the Presidential Committee on Climate Action and Green Economic Solutions, which will include representatives from various federal ministries and sectors. This committee is set to be inaugurated in July and is tasked with advancing Nigeria’s climate goals and green economic initiatives.
Earning credit – Offset project developer Carbon Tanzania has handed over around Sh14 bln (over $5 mln) in carbon revenue to the communities of Tanganyika district in Tanzania, the Citizen reported. Eight village communities in the district which participated in the Ntakata Mountains Carbon project received their share of revenue payments for 2023, the developer announced this week, bringing the total share of revenues to Sh22.51 bln since the inception of the project. The village governments entered into contracts with Carbon Tanzania in 2017 for protecting their village land forest reserves and earn the revenue through the sale of carbon credits generated thereby. The project avoids 550,000 tonnes of CO2 emissions per year and is certified by Verra.
ASIA PACIFIC
Setting sail – Two startups from South Korea’s Busan have decided to make their foray into the emerging carbon market for the international shipping sector, according to Hankyung. Mapsea, a provider of navigation solutions, has teamed up with carbon trading platform operator Geegooin to help shipping companies reduce their emissions, the report said. Mapsea, using satellite data to monitor the real-time movement of ships around the world, has entered the German and Singapore markets, while Geegooin seeks to apply blockchain technology for the disclosure of shipping emissions.
What’s cooking – Japan Airlines has signed a partnership agreement with the city of Yokohama to begin collection of used cooking oil that will be used as raw material for the production of sustainable aviation fuel (SAF). Trial collection will take place at the Aeon Food Style Kamoi grocery store chain owned by Daiei. Appropriate bottles will be made available at the store which people can fill up at home and bring back. It costs 200 yen ($1.30) to participate in the programme, and those that do will receive an original sticker and be entered into a lottery to win prizes from the airline.
Big spender – The Queensland government has announced A$26 bln in its upcoming state budget will go towards its Energy and Jobs Plan over the next four years. This compares to the A$19 bln that was committed to the plan in the previous year’s budget. The biggest ticket items will be A$16.5 bln towards renewable energy and storage projects, while A$8.5 bln will go to transmission infrastructure projects and upgrades. The government said the investment would support the state in achieving its legislated 75% emissions reduction by 2035 target and 85% renewable energy target by the same date.
Certifying CO2 storage – Malaysia’s state-owned oil producer Petronas’ subsidiary Petronas CCS Ventures has signed a Master Price Agreement with the Norwegian firm DNV for the certification of CO2 storage sites and associated facilities for carbon capture and storage (CCS) projects in Malaysia. The current agreement builds on an MoU signed between the two firms in 2022 for research on CCS. DNV is helping Petronas ensure that the emerging Malaysian CCS industry adheres to international standards and best practices.
AMERICAS
Net zero defined – The US Department of Energy announced a National Definition of a Zero Emissions Building Thursday. Part 1 of the definition sets criteria for a building with zero emissions from energy used for building operations. It applies to existing buildings and new construction and covers commercial and residential buildings not owned by the US federal government. At a minimum, a building that achieves zero operational emissions from energy use must be: energy efficient, free of on-site emissions from energy use, and powered solely from clean energy. The buildings sector is responsible for more than one-third of total US GHG emissions. (US DOE)
ZEV trucks rollin’ in CA – The sales of new zero-emission medium- and heavy-duty trucks in California in 2023 doubled from the prior year, accounting for one out of every six new vehicles sold, according to a report released Thursday. With 18,473 medium- and heavy-duty ZEVs sold in California in 2023, the state exceeded its Advanced Clean Trucks goal two years ahead of schedule and sold five times the required amount. Since 2021, a total of 26,921 medium- and heavy-duty ZEVs have been sold in California. (Office of Gov. Gavin Newsom)
Canada cap challenged – CEOs of some of Canada’s largest oil sands producers told lawmakers in Ottawa that they support paying a carbon tax but see the proposed federal oil and gas emissions cap as unnecessary, Reuters reported. The testimony came from executives from Suncor Energy, Imperial Oil, Cenovus Energy, Enbridge, and Shell, who appeared via videolink before a House of Commons committee. Canada is the world’s fourth-largest oil producer, and the oil and gas sector is the country’s highest-polluting industry, accounting for more than a quarter of all emissions. Suncor, Imperial, and Cenovus are part of the Pathways Alliance, a group of oil sands producers proposing to invest C$16 bln ($11.70 bln) into a CCS project, and a carbon tax would help provide a revenue stream for Pathways’ sequestered emissions, the outlet reported. Canada’s carbon tax has been a hot button political issue in recent months.
Ocean CDR investment – The BC Centre for Innovation and Clean Energy (CICE) is investing in ocean carbon removal pilots and field trials offshore British Columbia. Planetary Technologies and Coastal Carbon are leading the projects. Planetary Technologies is combining expertise from Metro Vancouver, Ocean Networks Canada, and the University of British Columbia to develop a small-scale ocean alkalinity enhancement field trial in Burrard Inlet. CICE has allocated C$1.9 mln towards this C$3.9 mln project. Coastal Carbon has partnered with Coastal First Nations Great Bear Initiative and Ocean Wise to develop and pilot a remote seaweed biomass monitoring solution critical to the restoration and expansion of seaweed carbon sequestration projects along British Columbia’s 26,000 km of coastline. CICE has allocated C$856,000 towards this C$3 mln project. (CICE)
VOLUNTARY
Russian forestry – Aluminium producer Rusal has been issued just over 1.3 mln carbon units (CUs) from the first reporting period of a forest protection project in Russia’s Krasnoyarsk Territory, with the project verified by the St. Petersburg Research Institute of Forestry. The issuance means that Rusal now holds an 85%-plus share of carbon units in the market. Rusal’s forest protection project monitors areas of forest for potential forest fires with small aircraft, preventing and extinguishing forest fires. The Russian UE registry began operating on Sep. 1, 2022, operated by JSC Kontur, which registers and records climate projects and carbon units issued by climate project implementers, and also tracks the movement of such units on the exchange and over-the-counter markets.
AND FINALLY…
Timber towers – At first glance, 80 M St. looks like an ordinary building, at home in the sea of offices that populate Washington’s Navy Yard. But it stands alone in its use of a timeless material: wood. The building contains the first office in the nation’s capital made from mass timber. Looking to entice tenants after the pandemic leasing slump, owner Columbia Property Trust added a three-floor wooden overlay on top of the seven-story building. The experiment was a success, reflecting the growing popularity of mass timber in high-rise buildings. Proponents say the trend could help the country — and world — address climate change, with buildings acting as a carbon sink, storing the CO2 that trees absorb during their lifetimes. (E&E News)
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