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CARBON FORWARD NORTH AMERICA
Canada’s industrial carbon pricing can survive even with political turnover
Industrial emissions trading systems are here to stay in Canada regardless of the potential change in the political landscape provincially and on a federal level, panellists at a conference said Tuesday.
Canada announces second carbon credit offtake agreement for CCS tech
Canada’s C$15 billion ($10.9 bln) public investment vehicle will purchase up to 200,000 credits per annum over 15 years at an initial fixed price from an Alberta carbon capture and storage (CCS) project, but an expert criticised the bespoke nature of federal offtake agreements thus far as insufficient to meeting climate goals.
Canadian carbon offset fund announces RFP towards first Quebec project
A Montreal-based fund that develops carbon offsets announced Tuesday a request for proposal (RFP) for its first project in Quebec at the Carbon Forward North America conference.
Canadian regulators prepare offset protocols amid uncertain demand
Federal regulators are planning to roll out a number of offset protocols in the near future, though future Canadian carbon credit demand remains uncertain as several elections could threaten markets, a conference heard Tuesday.
EMEA
EU ETS2 prices forecast to rise four-fold in first four years despite front-loading -analysts
Prices in the EU’s second emissions trading system could jump more than four-fold within the first four years of the market’s operation as an initial excess in allowance supply is rapidly replaced by a deficit as an early market-priming initiative gives way to strong demand, according to analysts.
FEATURE: Plastics makers look to EU CO2 fees to push decarbonisation, but incinerators are sceptical
European plastics producers are looking to the inclusion of waste incineration in the EU Emissions Trading System (ETS) for further impetus to boost recycling and cut emissions – but incinerators worry they will bear the brunt of the new carbon costs.
Industrial conglomerate a step closer to net zero manufacturing at Bulgarian factory
A major European industrial conglomerate says it has taken a major step towards net zero manufacturing at a factory in Bulgaria, largely driven by energy optimisation measures.
BRIEFING: CSRD to help inform investment decisions and level playing field in company disclosures
The increasing disclosure requirements placed on companies under the EU’s Corporate Sustainability Reporting Directive (CSRD) from next year will help to inform investment decision making and level the playing field in terms of what companies disclose, a sustainability executive said at a conference on Tuesday.
Euro Markets: EUAs end little changed as June options expiry continues to influence price action
European carbon prices ended Tuesday little changed, holding steady in the relatively narrow price channel they had occupied in the second half of last week, as participants reported technical-driven trading focused on the approaching options expiry.
AMERICAS
Boost in renewables brings California emissions in April to record lows
California’s electricity sector recorded the lowest CO2 output since the state’s independent system operator began recordkeeping a decade ago, as renewables’ share made up more than half of the grid, data published Monday showed.
ASIA PACIFIC
China announces first batch of qualified verifiers for CCER programme
China on Tuesday announced the first batch of qualified bodies to conduct validation and verification work under the country’s national voluntary carbon credit programme, a move that will remove hurdles for developers to proceed with their offset projects.
Philippines Article 6 registry operator issues call for carbon projects
Maharlika Carbon, which is vying to host the Philippines’ Article 6 registry, on Tuesday issued a call for nature-based, biodiversity, renewable energy, and green technology projects across the Philippines to register on its platform for participation in environmental markets.
Australian soil tech developer to undertake review of carbon business after “disappointing results”, CEO departure
An Australian soil carbon tech developer on Tuesday announced a complete review of its carbon business due to what it described as “disappointing results to date” and the departure of its managing director and CEO.
INTERNATIONAL
Talks on a new global climate finance goal grind to a halt at UN mid-year climate conference
Negotiations on setting a new global climate finance goal have been pushed out to later this year without a clear path for progress ahead, as national diplomats reached an impasse at the mid-year UN climate talks in Bonn on Tuesday.
VOLUNTARY
Academics find holes in Verra’s new consolidated voluntary carbon methodology for REDD+
Verra’s consolidated methodology for REDD+ could still see voluntary carbon project developers use inside knowledge to cherry pick forests that are unlikely to be chopped down, because they have been overlooked in the jurisdictional maps used to assess the risk of deforestation, warns a new academic paper.
VCMI announces first ‘Platinum’ voluntary carbon claim from emerging economy
The first company from an emerging economy, and only the second overall, has announced a Platinum Claim under the Voluntary Carbon Markets Integrity Initiative (VCMI), which certifies ‘high-integrity’ statements about corporate use of carbon credits to address residual emissions.
Microsoft adds almost 1 mln nature-based carbon removal credits to portfolio
Microsoft has continued to ramp up its voluntary removal purchases as part of its plan to become carbon negative by 2030, adding nearly 1 million nature-based units to its portfolio as part of a deal announced Tuesday.
Kenya adds ‘flower power’ to extensive carbon markets engagement, forex goals -media
Kenya, a regional frontrunner in the voluntary market (VCM), has announced plans to facilitate carbon project development on flower farms to mitigate emissions and increase foreign exchange earnings for the country, according to local media.
New insurance product protects carbon credits from political and extreme weather risks
An insurance provider has launched a new product to safeguard the purchase of carbon credits in case they are cancelled or invalidated as a result of political risks such as regulatory changes or the impact of weather on carbon projects, it announced on Tuesday.
Gold Standard unveils pilot for carbon crediting climate policies
Governments will soon be able to receive emissions reductions validation via a new policy crediting pilot launched by Gold Standard on Tuesday, with the units expected to be tradable as ITMOs under Article 6 of the Paris Agreement.
Biochar carbon removal has the potential to stand the test of time -study
Carbon stored through biochar may remain in the soil or certain materials for decades, centuries, or even millennia, making it a valid option for the upcoming EU certification methodology if stricter rules apply, according to a study.
Carbon insurer deepens pool of replacement voluntary credits for in-kind emergency payouts
A firm providing insurance to buyers of voluntary carbon credits, offering payouts for non-delivery either in cash or in kind, has added over a dozen new project developers to its supplier pool.
Ag-based project developer generates first-ever carbon credits from the US rice industry
A US-based agricultural offset project developer announced Tuesday credit generation for large-scale sustainable rice cultivation, which it said was the first of its kind in the country.
BIODIVERSITY (FREE TO READ)
Rainforest Alliance, Swiss firm team up to scale sustainable farming in Kenya
Non-profit Rainforest Alliance and a Switzerland-based advisory company have announced a partnership to boost investments towards conservation efforts among Mount Kenya’s farming communities.
Managing overfishing among the most effective strategies to mitigate climate change, study says
Halting overfishing can make a huge difference in tackling climate change, as the practice poses significant threats to the ocean’s ability to store CO2 and preserve ecosystems, a study released on Tuesday has shown.
Biodiversity Pulse: Tuesday June 11, 2024
A twice-weekly summary of our biodiversity news plus bite-sized updates from around the world. All articles in this edition are free to read (no subscription required).
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BIOCHAR REPORT
Supercritical’s latest report reveals a 30x surge in biochar supply over the next four years, however 88% of this growth comes from low-quality credits. “Boom or Bust? 2024 Biochar Market Outlook” delves into the pressing challenges buyers face, offering exclusive data and trends from Supercritical’s own marketplace which covers 80% of the market. Discover why high-quality biochar commands premium prices and how savvy buyers secure long-term agreements amidst the scarcity. This essential report equips you with the insights needed to navigate the evolving biochar landscape and make informed decisions in this burgeoning market. Download the report
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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
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See all listings or post a job
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BITE-SIZED UPDATES FROM AROUND THE WORLD
INTERNATIONAL
The case for climate finance – A new policy brief by think tank Bruegel makes the case for the EU, the US, and other advanced economies in the G7 to scale up climate finance to emerging and developing countries. Financial support for renewables in those countries is necessary because the coal exit will not happen without it, putting UN climate goals out of reach, the paper argues. ‘Just Energy Transition Partnerships’ with South Africa, Indonesia, and Vietnam are embryos of an approach that meets the needs of donor countries by explicitly conditioning funding to a coal phase-out, the paper says. For financier countries, the costs would be manageable, on the order of 0.3% of GDP per year, the study estimates.
Stepping up a gear – SBTi has appointed a five member ‘validation council’ it says will be a crucial component of the body’s transformation from initiative, to formal voluntary standard-setter. The council is set to provide independent validation services for 5,500 companies signed up to SBTi, and will “help equip the validation services entity to meet the continued momentum from companies and financial institutions worldwide to set climate targets,” said SBTi CEO Luiz Amaral.
EMEA
Dirty company cars – The electrification of company cars in Europe is lagging behind the private car market, with battery-electric vehicles accounting for 14.1% of corporate sales, behind private sales (15.6%), according to a new report by green mobility group Transport and Environment (T&E). Six out of 10 new registrations in the EU are company cars, T&E says. And because they drive twice as many kilometres as private vehicles, they account for 74% of all new car emissions. “Companies have higher purchasing power, so they should be leading on the EV transition. Instead they lag behind households on electrification,” said Stef Cornelis from T&E. The EU’s carbon pricing scheme for road transport and heating fuels (ETS2) is set to be dominated by the transport sector, with light vehicles representing the biggest share of emissions covered by the scheme, analysts say.
Tata for tat – India-based Tata Steel says it will press ahead with plans to return to profitability at its Port Talbot steelworks in the UK, no matter who forms the next government, Sky News reports. The firm was responding to media reports Labour was hoping to coax a U-turn at the UK’s biggest steelworks, should it win the day on July 4, when the country will hold a general election. The left-leaning party is currently comfortably leading the polls. Tata, the largest emitter in the UK ETS, confirmed earlier this year that almost 2,800 roles would go under a transition to greener steel, which would see both labour-intensive blast furnaces switched off by September and soon replaced with cleaner electric arc technology under a £1.25 bln investment. The jobs cut enables the firm to access £500 mln of government funding first announced in September. Sky reported that Tata said the long-term future of steelmaking at Port Talbot would be placed at “significant risk” should the grant be withdrawn. The Port Talbot steelworks in South Wales reported 5.7 Mt of emissions last year covered by the UK carbon market, little-changed from last year but a drop from 2021’s 6.6 Mt.
Green security – The rise in British renewables, together with insulating homes and electrification of heating and transport, will play a much larger role in bolstering the UK’s energy security than potential new domestic oil and gas production, according to analysis from the Energy and Climate Intelligence Unit (ECIU). As things stand, the UK is set to become more dependent on foreign energy imports over the next five years as the North Sea’s output continues its decline, but faster uptake of clean energy has the potential to maintain the current level of import dependency by 2030, even without new oil and gas licences, and to then bring it down and improve UK energy security compared to today, the report finds. By 2030, energy security could have improved from today’s level with speedier roll-out of renewables. The UK currently imports about 60% of its gas use, with a faster shift to renewable energy reducing its exposure to volatile gas markets.
Affordable & pragmatic net zero – That’s how the UK Conservative party described its planned transition, in the manifesto released Tuesday. It pledges to boost energy independence by legislating annual licensing rounds for North Sea oil and gas production, and to back up renewables with new gas-fired power stations. At the same time, the Tories say they would treble the country’s offshore wind capacity, build the first two carbon capture and storage clusters, invest £1.1 bln in green industrial growth, and scale up nuclear power. The party also confirmed its plans to introduce a carbon border adjustment mechanism by 2027 for imports of steel, aluminium, ceramics, and cement. The Grantham Research Institute on Climate Change and the Environment called it a “disappointing” document compared to the 2019 manifesto, lacking in credible policies to deliver net zero or resilience to climate change. The election takes place on July 4.
Behave yourself! – ClearBlue Markets has launched an EU ETS trading model based on behavioural insights. The product leverages behavioural analytics to offer insights into companies’ emission allowance management strategies, the firm said in a Tuesday release. The model uses more than 30 clusters of companies that are then analysed based on trading behaviours. It forms part of a partnership with SparkChange analysts Jan Ahrens and Philipp Ruf.
ASIA PACIFIC
Zero emission cargo – South Korean shipping company HMM has entered into an agreement with Swedish furniture retail giant IKEA to reduce CO2 emissions of ocean transportation of IKEA’s products by using HMM’s low-carbon ocean transport solution. HMM’s solution Green Sailing Service aims to help shippers and stakeholders reduce Scope 3 emissions by allowing them to report carbon reductions directly resulting from HMM vessels sailing on low-carbon fuels, Offshore Energy reported. Under the agreement, around 11,500 tonnes of CO2 emissions will be reduced from Mar. 1, 2024, until Feb. 28, 2025, with the deployment of biofuels for the entire IKEA ocean cargo shipment with HMM. The amount of CO2 emissions saved through this partnership is capable of transporting 14,534 TEU (twenty-foot equivalent unit) worth of zero emission cargo from Busan in Asia to Rotterdam in Europe, according to HMM.
Coal to SAF – India’s largest power producer NTPC is exploring ways to produce sustainable aviation fuel (SAF) by mixing carbon captured from its thermal power plant using carbon capture, utilisation, and storage and producing green hydrogen through renewable resources. Thereafter, both gases will be mixed in the reactor to make jet fuel, the Economic Times reported. The state-owned company is looking to set up an annual capacity of 100,000 tonnes of clean jet fuel and will explore production at its upcoming green hydrogen hub in the state of Andhra Pradesh.
Offshore wind project – A group of five Japanese companies has been appointed by the New Energy and Industrial Technology Development Organization (NEDO) to develop technologies for a floating offshore wind power generation system, and to reduce the cost of offshore wind power generation. C-Tech Corporation, Hitachi Zosen Corporation, Kajima Corporation, Hokutaku, and Mitsui have jointly proposed the project off the coast of Aichi Prefecture, the firms said in a release. The five companies will initiate this project after completing the grant procedure with NEDO, and then engage in technological development aimed at rapid cost reduction and expanded adoption of floating offshore wind power to achieve carbon neutrality by 2050.
Acquired – Australia data management solutions company Enviro Capture Group announced it had acquired carbon footprint analysis tool ClimateClever Platform, the two entities announced Tuesday. The company’s said the platform specialises in comprehensive carbon footprint measurement and tracking, providing breakdowns of emissions source, scope, and location. Enviro Capture said acquiring the platform would solidify its position in the emissions reporting space.
Helping farmers – Two venture capital firms, Singapore-based Better Bite Ventures and Israel’s Trendlines Group have invested in an agri-fintech startup, AgriG8 to help rice farmers in Asia reduce methane emissions by up to 55%. Founded in 2021, AgriG8 works with local farmer aggregators such as cooperatives and NGOs and helps farmers reduce emissions. It has also built a gamified digital platform, CropPal, to receive data from producers, as well as finance and incentive methane-cutting agricultural practices. CropPal platform consists of three components: the farmer-facing app, a dashboard for lenders and farm managers, and a background validation framework backed by machine learning, Green Queen reported. The firms have not disclosed the sum invested.
Carbon neutral housing – Tokyo-based Daito Trust Construction has launched a carbon offset service to provide free credits for the carbon neutral rental housing units sold by the company, a press statement said. The company has already sold 81,156 carbon neutral rental housing units till Mar. 2024. Daito will convert the CO2 reductions achieved through energy-saving performance of these rental housing units into credits and use them to offset CO2 emissions from business activities, it said.
CCS partnership – Malaysian oil and gas company Brooke Holding has partnered with SLB to establish a carbon capture and storage (CCS) hub in Sarawak, Malaysia. The partnership will include full lifecycle of CCS development, including subsurface and surface evaluation, storage capacity assessment, and safety assurance, New Sarawak Tribune reported. The initiative also aims to foster local skills development and create value within the community, contributing to Sarawak’s sustainable growth.
Timor time – A Chinese developer will invest tens of millions of dollars over the next decade in carbon credit initiatives across the Southeast Asian country of Timor-Leste, according to an announcement by the office of Timorese President J Ramos-Horta on Monday. The Shanghai Treasure Carbon New Energy Environment Protection Tech Co, Ltd (STC) will simultaneously provide funding for technical training programmes to upskill local Timorese staff, donate clean cookstoves, and use a portion of carbon credit proceeds to finance sustainable development projects in-country. Over the next few days, the STC delegation will meet with Timorese officials to finalize the implementation details for the investment package, according to government reports.
AMERICAS
CO2 storage estimator – The US National Energy Technology Laboratory (NETL) announced Tuesday it has released version 5 of its CO2-Screen tool, a database that can be used to estimate the CO2 storage potential of underground geological environments. The new version features additional storage efficiency factors based on experimental measurements and reservoir simulations conducted on rock cores from storage reservoirs targetted for CO2 storage. The tool also no longer limits storage efficiency factors to open boundary conditions, where reservoir fluids are assumed to be managed. Instead, users can now estimate storage based on both closed and semi-closed boundaries, which are found in reservoirs that are sealed or partially sealed and in which there is little to no CO2 migration.
Massachusetts forest plan – The administration of Governor Maura Healey (D) of Massachusetts released Tuesday a work plan for its “Forests as Climate Solutions” initiative. Policies within the work plan include expanding forest reserves, issuing a list of priority projects, updating existing regulations and programmes to maximise CCS, developing a dashboard to track metrics, and gathering data on harvested wood processing and utilisation. The Climate Forestry Committee to the Executive Office of Energy and Environmental Affairs said it has finished reviewing forest management projects that were paused during the first part of the initiative, and will resume the selection and vetting process for new projects.
DOE shuffle – Jennifer Wilcox, who served as principal deputy assistant secretary in the US DOE’s Office of Fossil Energy and Carbon Management (FECM), left the agency at the end of May, reported E&E News. Wilcox joined DOE in Jan. 2021, but will return to the University of Pennsylvania and World Resources Institute to work as a senior fellow on CDR and reducing industrial emissions. Mark Ackiewicz, deputy assistant secretary at the Office of Carbon Management at FECM, will serve as acting principal deputy assistant secretary at FECM on a temporary basis while the position is being recruited.
To the rescue – More than 200 organisations have endorsed ‘No on 2117’, a campaign against a voter initiative in Washington that seeks to dismantle the state’s cap-and-trade programme, with the total amount raised or pledged now exceeding $12 mln – up $1 mln since its launch in April. Recent backers include insurance firm AAA Washington, non-profits American Farmland Trust and the Seattle Foundation, and tribal groups, among others. The campaign has nearly 3,000 grassroots donors, with 95% of donations being $95 or less, according to the campaign website.
Almost there – Canada’s Finance Minister Chrystia Freeland said a federal tax credit for carbon capture and storage (CCS) projects is almost in place, adding that she now wants to see progress on Canadian oilsands group Pathways Alliance’s C$16.5 bln ($12 bln) carbon capture project. The government promised a CCS tax credit in 2021, but legislation wasn’t introduced until last fall. Executive Chair of the Pathways Alliance Derek Evans in May said the group couldn’t start on its project until it had fiscal certainty. But Freeland assured that certainty is nearly there and she now wants to see “shovels in the ground”. (Canadian Press)
Promoted – Resilient has announced the promotion of Jonathan McGillivray to partner. His work encompasses advising on climate strategy, decarbonisation, carbon finance, and energy regulatory compliance, among other areas, the company said. Lisa DeMarco, senior partner and CEO of Resilient, highlighted that Jonathan’s promotion underscores the firm’s commitment to excellence and resilient growth.
VOLUNTARY
Logged down – Verra has launched a public consultation on proposed revisions to its VM0010 Methodology for Improved Forest Management: Conversion from Logged to Protected Forest. The changes would improve the methodology’s applicability conditions, the standard said. Verra is also releasing a correction and clarification document to correct several equations in the methodology. VM0010 quantifies the GHG benefits generated from preventing the logging of forests.
Name change – Climate Neutral Group (CNG) will officially change its name to Anthesis B.V. on July 1, 2024, operating under the name Anthesis Netherlands, it announced today. Since 2002, CNG has supported over 4,500 companies around the world to reduce and offset carbon emissions, with products including impactful reporting and support for sustainable value chains. In 2022, CNG merged with Anthesis Group. The domain of it email addresses will change to @anthesisgroup.com.
AND FINALLY…
Free falling – The Chicago-based architecture firm Skidmore, Owings & Merrill LLP (SOM), known for constructing the world’s tallest structure in Dubai, is developing skyscraper designs that incorporate gravity storage to help reduce climate pollution. This technology, developed in collaboration with Energy Vault Holdings, involves using electric motors to lift massive blocks to create potential energy, which can then be converted back to electricity when needed. Energy Vault has recently completed a major project in Shanghai, and the cost-effectiveness of their systems, currently operating at 5 to 10 cents per kWh, shows promise compared to traditional lithium-ion batteries. SOM’s approach, which utilises the height of skyscrapers to enhance energy storage potential, could significantly offset the carbon footprint of large buildings, potentially making them net carbon payback entities within two to four years. Despite these innovative solutions, challenges such as market limitations for “super-tall” buildings and lengthy permitting processes pose potential setbacks, as noted by market analysts observing Energy Vault’s recent struggles, including a significant drop in share price since going public. (Energy Mix)
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