CP Daily: Thursday June 13, 2024

Published 03:29 on June 14, 2024  /  Last updated at 03:29 on June 14, 2024  / Carbon Pulse /  Newsletters

A daily summary of our news plus bite-sized updates from around the world.

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Article 6 negotiators decide to push emissions avoidance decision out to 2028

In a late move at mid-year UN climate talks in Bonn, country negotiators formally decided Thursday to try and clean up the Article 6 process by pushing several “spicy” topics out to future years, notably including that of emissions avoidance, easing the workload ahead of COP29 in November.


Voluntary carbon market grows interest in removals, panellists maintain role for reductions

Prominent buyers in the voluntary carbon market (VCM) have raised the profile of removals credits, but costs remain high and reductions credits still have a key role to play in achieving voluntary net zero targets, panellists told conference attendees this week.


Greens offer backing for ‘industrial deal’ as ticket to join EU Parliament majority

The weakened European Green Party has offered to join a coalition led by outgoing European Commission President Ursula von der Leyen, saying they are ready to back an “industrial Green Deal” in exchange, following last weekend’s elections.

EU set for a fight over where the CBAM money goes

The full start-up of the EU’s Carbon Border Adjustment Mechanism (CBAM) is set to drive a battle over who gets to pocket the revenue, even if it starts low. 

Danish Parliament approves CO2 tax for industry, shipping

The Danish parliament has approved two bills that will impose a CO2 tax on parts of industry, including shipping and waste-to-energy companies, from next year.

Far-right surge in German coal region ‘concerns us a lot’, state chief says

The European Green Deal looks likely to have survived the EU elections last weekend, but the far-right’s surge in Germany’s coal regions gives reasons for concern, with trade unions warning about a “corrosive cocktail” threatening climate policy in the long term.

New electricity storage technology secures £300 mln to start rolling out in UK

A new technology that can store renewable energy for several weeks, longer than batteries, has secured $300 million of investment in a move that could turbo-charge the net zero transition.

Companies mostly ready for EU’s new sustainability reporting rules -survey

Almost two-thirds of companies feel confident about their ability to comply with the EU’s newly-adopted Corporate Sustainability Reporting Directive (CSRD)  due to start applying this year, according to a new survey.

Euro Markets: EUAs give up early gains as late return to rangebound trading highlights options pull

European carbon allowances remained firmly rangebound for a fourth day, shrugging off a near 10% rally in natural gas this week as the weight of open interest in June EUA call options appeared to be acting as an anchor on prices, breaking the long-standing correlation between the two markets.


Major Canadian banks will continue to finance oil and gas as part of the energy transition

Canada’s five major banks are committed to serving their oil and gas clients towards long-term net zero goals, executives said before a parliamentary committee on Thursday, as elected officials questioned the specifics of the firms’ climate goals.

RGGI Market: Prices race to new highs in search of a ceiling

RGGI Allowance (RGA) prices hit new highs after posting a record settle at last week’s second quarterly permit sale, with traders viewing supportive warm weather forecasts, the absence of a reserve cap, and options activity adding to the upside.

WCI Markets: CCAs consolidate, WCAs upbeat post strong Q2 auction

California Carbon Allowance (CCA) prices stabilised after last week’s price rout, while trade in Washington Carbon Allowances (WCAs) in the secondary market picked up after a strong second quarterly auction result.

US federal court rules Oregon county case against fossil fuel companies can proceed within the state

A US federal district court sided with an Oregon county’s motion to hear its case against fossil fuel companies in a state court.

Rise in US biofuels production could worsen air quality, particularly in disadvantaged communities -non-profit

Increasing support for US biofuels production – including renewable diesel (RD) and ethanol – as more sustainable alternatives to petroleum-based counterparts, overlook their impact on air quality, particularly in rural Midwestern communities, analysis by an environmental non-profit found.

Brazilian Senate committee approves national green hydrogen framework

The Brazilian Senate’s Special Committee on Green Hydrogen advanced a bill Wednesday establishing a regulatory framework for energy sources that includes incentives designed to promote the nation’s industry.


Malaysian carbon trading bill to be presented before parliament by year end

Malaysia’s carbon trading legislation will be presented before Dewan Rakyat, the lower house of parliament, by the end of this year, according to the country’s deputy prime minister.

Australian telco announces move away from carbon credit use, increases emissions reduction targets

Australia’s largest telecom company Telstra announced Friday it will no longer purchase carbon credits, choosing instead direct investments to reduce its emissions footprint as well as increasing its Scope 1 and 2 emissions reduction targets.


BRIEFING: Chile’s draft Article 6 law is ambitious, but may see slow project approvals

The public consultation period for Chile’s draft Article 6 regulation concluded this week as stakeholders praised ambitious timelines and comprehensive coverage but flagged cumbersome processes for project approval.

Verra places voluntary carbon projects implicated in Brazilian police probe on hold

Verra has placed three Brazil-based voluntary carbon projects on hold, pending a formal review, after they were implicated in a fraud probe launched by the Brazilian Federal Police (PF) last week.

INTERVIEW: Startup advisory firm fishes for big catch of clients in Blue Ocean strategy

Threadbare liquidity and a long bear market have sent shivers through many heavyweight players in the voluntary sector, but two stalwarts of the market believe they have picked the opportune time to launch their new advisory and execution service.

INTERVIEW: Finnish paper giant sees rising demand for synthetic fuels to support CO2 capture

Rising demand for synthetic fuels in aviation and shipping to meet EU decarbonisation targets is driving plans to install carbon capture facilities at pulp and paper mills in the Nordics, with potential to capture about 12 million tonnes of biogenic CO2 annually.

Swiss reinsurance giant signs multi-year deal to purchase Bolivian biochar credits

A Swiss reinsurance firm has signed a multi-year deal to purchase credits from a biochar project in Bolivia, it announced on Thursday.

VCMI partners on initiative to improve climate prosperity using carbon markets

The Voluntary Carbon Market Integrity Initiative (VCMI) has agreed to work with a global partnership of vulnerable countries to broaden access to climate finance through the carbon markets.

Bolivian senator proposes carbon projects as country thaws on voluntary market

A Bolivian senator expressed support on Tuesday for carbon projects as a counterpoint to extractive industry, as the lower middle-income country slowly reverses its long opposition to the voluntary carbon market (VCM).


UBS partners with non-profit to limit investment impacts on nature

UBS has partnered with a nature-focused non-profit to better understand how to limit impacts to nature in clean energy investments, with the findings released on Thursday.

IDB targets scaling biodiversity finance, markets in mainstreaming nature plan

The Inter-American Development Bank (IDB) Group has launched a natural capital and biodiversity action plan, planning to embed natural capital more deeply into its operations while scaling biodiversity finance mechanisms.

Biodiversity and electricity grids can co-exist, EU power association says

Protecting biodiversity while deploying more infrastructure to decarbonise electricity production is possible and desirable, according to a new guidebook released on Thursday.

Companies still don’t trust a stand-alone market for biodiversity, experts say

A business case for voluntary biodiversity credits is not there yet, as companies prefer to engage in the carbon market with biodiversity co-benefits due to a lack of trust in a stand-alone market, experts have told Carbon Pulse.

UK govt-linked voluntary biodiversity credit scheme eyes expansion

The UK’s first voluntary biodiversity credit scheme is set to expand over the next two months, with 10 projects ready to be added to the newly-established framework, Carbon Pulse has learned.

Danish companies recommend halting biodiversity loss by 2030

Some 22 organisations from across the private, non-profit, and academic sectors in Denmark have agreed with an alliance’s set of guidelines that recommend halting biodiversity loss by 2030 at the latest.

Biodiversity Pulse: Thursday June 13, 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).



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

Carbon Forward Expo – October 8-10, London and Online: Save the date! More info coming soon…


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Clean energy superpower – The UK’s Labour Party, on course to win the July 4 election, intends to achieve 100% clean energy by 2030, five years earlier than currently planned, and lower household energy bills in the process, it said in the manifesto released on Thursday. This includes goals to double onshore wind, triple solar, and quadruple offshore wind by 2030, and plans to invest in CCS, hydrogen, and marine energy. The party also pledged to complete and extend the life of existing nuclear power plants, and said new ones will help to provide energy security. Gas-fired power will also play a role, through a strategic reserve of stations maintained to ensure supply security. Labour will not issue new licences for offshore oil and gas exploration or coal, will ban fracking, and will impose a windfall tax on oil and gas companies, it added. The party also intends to introduce a carbon border adjustment mechanism, as the current Conservative government has promised. The manifesto does not mention plans for the UK ETS.

Last round for opinions – The UK public consultation on CBAM closed today, although no link was made with the EU mechanism. Julia Michalak, IETA’s EU policy director, told Carbon Pulse that the association is “concerned that if the EU and UK CBAM differ significantly, it may encourage a patchwork of CBAM legislation to emerge worldwide, creating an enormous complexity for industries and undermining cooperative action for net-zero future”. IETA urges the UK to align its CBAM with the EU model, to avoid excessive costs and administrative burden. “The UK and EU CBAM should be harmonised to set a blueprint that could be replicated by other jurisdictions that consider to establish carbon border taxation,” Michalak added.

Greener aluminium – Alternative investment firm TLG Capital has announced a $10 mln structured private credit facility dedicated to climate financing for one of Nigeria’s largest aluminium recyclers, the name of which remains undisclosed. The initiative is being led in collaboration with Wema Bank, the pioneer of Africa’s first fully digital bank, ALAT. Over the next five years, the investment is expected to enable the recycling of metal equivalent to three Eiffel Towers, achieving a 95% reduction in CO2 emissions compared to primary-sourced aluminium. The project will become Nigeria’s largest and first industrial-scale aluminium recycler, with a five-year carbon footprint reduction equivalent to removing 100,000 passenger vehicles off the road. The involvement of Wema Bank from the outset should improve the ease at which the investment exit is ultimately achieved in Nigeria’s economic climate. (Further Africa)

Swiss rejection – The Swiss parliament has rejected a historic human rights ruling in favour of the country’s “climate seniors”, who claimed the government’s inadequate response to climate change, in particular the extreme heat it is causing, was damaging their right to health and life. The European Court of Human Rights sided with the Swiss women’s claim in April and ordered Switzerland to do more on climate change. The decision was unprecedented, and binding. Yet the Swiss parliament voted on Wednesday to reject it, saying that the country already had an effective climate change strategy. Right-wing politicians argued during the debate that the ruling constituted an overreach by “foreign judges”. (BBC)


Mangroves in Myanmar – Taiwan Carbon Solution Exchange (TCX) will launch the Myanmar mangroves blue carbon project, registered on Verra, and is TCX’s first nature-based and carbon dioxide removal (CDR) project on Thursday, the exchange announced. Myanmar holds 4.4% of the world’s mangrove area, but only 3% of its mangroves are in protected areas, which has led to rapid degradation and loss, according to the exchange. The project, through community-based mangrove restoration and planting, achieves carbon reduction and meets nine UN SDG goals. TCX launched its international carbon trading platform last year. Another green carbon project will be launched by the end of June to meet the diverse carbon credit needs of the enterprises, the release stated.

Low carbon skies – Bangkok Airways has partnered with PTT Oil and Retail Business Company (OR), to launch the “Low Carbon Skies by Bangkok Airways” initiative, which is aimed at reducing CO2 emissions from aviation operations. The airline will use sustainable aviation fuel (SAF) on flights between Samui and Bangkok on a pilot basis. The initiative is part of a broader strategy to enhance the sustainability of airports under its management, it said.

Measuring risks – The Bank for International Settlements (BIS) and the Monetary Authority of Singapore (MAS) have developed a blueprint for a platform that integrates regulatory and climate data to help financial authorities identify, monitor, and manage climate risks in the financial system, the entities have announced. The blueprint known as Project Viridis shows how regulatory data can be integrated with climate data to provide insights into climate-related financial risks, helping authorities form a view of financial institutions’ risk exposures, and to identify areas that may require deeper risk assessment.


Another lawsuit against EPA – The EPA’s light- and medium-duty vehicle regulations face a new lawsuit from industry coalitions across oil and gas, auto dealers, and corn growers as of Thursday, according to E&E News. The American Fuel and Petrochemical Manufacturers, the American Petroleum Institute, and US biofuels producers led the petition for review filed in the US Court of Appeals for the District of Columbia Circuit. Seventeen parties joined the filing in name, including 13 state corn growers associations, the Clean Fuels Development Coalition, Diamond Alternative Energy, Valero Renewable Fuels Company, and the American Free Enterprise Chamber of Commerce. So far, the rules face a legal challenge from 25 states, a motion to intervene in support from over 20 states and environmental advocacy groups, and a separate motion to intervene in support from major US auto manufacturer Ford Motor Company.

Waiver delay benefits diesel trucks – More than 1,000 diesel-powered cargo trucks — which should’ve been banned from serving California ports — were granted access to the ports of Los Angeles and Long Beach due to inaction from the Biden administration, reported the Los Angeles Times. ARB voted to ban fossil fuel-powered big rigs from obtaining new registrations to serve California’s 12 major seaports in Apr. 2023, a rule that was slated to go into effect on Jan. 1. But one year later, the EPA has not granted a waiver for California’s Advanced Clean Fleets (ACF) rule and state air regulators have been unable to enforce the regulation. The EPA declined to comment on the addition of more diesel trucks at Southern California ports and the pending ACF waiver.

BECCS for power – Energy services provider Babcock & Wilcox (B&W) this month announced it has signed an agreement with NorthStar Clean Energy to begin work on a Bioenergy with Carbon Capture and Storage (BECCS) conversion of a former coal-fired power plant in Michigan using B&W’s biomass post-combustion CO2 capture technology. The firms are also working to finalise their full contract in alignment with a front end engineering and design study conducted by B&W for the project. The existing limited notice to proceed enables B&W to begin detailed design and procurement work while the firms finalise their contract. Upon completion, the Filer City power plant will use sustainable biomass as fuel. It will also be capable of capturing up to 550,000 tonnes of CO2 annually, which the firms said will be stored will be permanently stored underground.

EDF’s EPA support – Non-profit the Environmental Defense Fund (EDF) filed Tuesday an amicus brief to support the US EPA in defending its controversial power plant standards released in April. EDF intends to help the agency defend the rules against Republican and energy industry request for a longer-term stay that would see them essentially paused pending further litigation. In May, a US federal appellate court denied requests for an immediate stay, but left the door open to a longer-term stay. EDF argues that the rules protect public health and help address climate change, which the EPA is obliged to do, amongst other arguments.

Electrify Canada – A report by the Canadian Climate Institute published Thursday found that provinces should stop expanding gas infrastructure and invest in electrification to ensure reliable and affordable building heating. Despite regional differences, electrifying building heat is the lowest-cost way to achieve net zero emissions across the country, the think tank said. Nonetheless, managing electricity demand peaks will be a central challenge for all provinces, but Canadians could heat buildings using much less energy even as the population and economy grow.

BC energy storage – The BC Centre for Innovation and Clean Energy (CICE) discussed the landscape for energy storage in the province, with emergent opportunity to decarbonise industrial heat, a webinar said Thursday. The province, which largely generates its electricity via renewable hydropower, should invest in more energy storage technologies beyond lithium ion batteries, panellists said, particularly as the province moves towards electrification of heating and electric vehicles to meet its climate targets of 40% below 2007 levels by 2030.


Fresh classifications – The website CDR.fyi has launched an update to its methods classification system, in order to cover durable carbon removal methods comprehensively and reflect the current state of the industry. It has also introduced a new ‘storage method’ classification to further enhance granularity and precision of its data. The storage methods list includes marine sediments, geological formations, and concrete. While the updated methods list includes bio-oil sequestration, marine biomass sinking, and river alkalinity enhancement. The updated classification will be used across its platform for transaction tracking, leaderboards, market updates, and map filtering. Ensuring that its data and insights on carbon removals remain relevant, it says.

Intelligence partnership – Google has partnered with ClimateView to accelerate action on the green transition in cities, regions, and nations, through driving use of Google’s Environmental Insights Explorer (EIE). Through EIE, cities can explore a range of data – transportation emissions, building emissions, solar rooftop potential and tree canopy coverage – to inform, track and drive climate action at the local level, said a LinkedIn post. Partnering with ClimateView then allows the data to used in the right way by cities, whether for urban planning, monitoring, introducing interventions, or reporting, said Google. ClimateView is a data platform supporting governments to drive the green transition.

New grounds – Voluntary carbon credit insurer Kita announced Thursday that it has gained authorisation to insure companies throughout the EU and EEA through a partnership with Pro MGA Solutions Europe GmbH. Kita was already operational in the UK, USA, Canada, Singapore, and Switzerland. The company’s expansion into new markets comes amid a flurry of recent announcements such as: adding over a dozen new ‘replacement credit’ suppliers, a partnership with market analytics firm ClearBlue, and a ‘buffer-as-a-service’ arrangement with the Iceland-based International Carbon Registry (ICR).


Geothermal rising – US House Committee on Science, Space, and Technology on Thursday passed HR 8665, a bipartisan bill that directs the Department of Energy to establish a programme that supports the research and development in supercritical geothermal systems. Supercritical geothermal, also referred to as superhot rock energy, is a category of enhanced geothermal systems that requires deep drilling technologies to access dry rocks at temperatures around 400C or greater. Water or other liquids are then injected at depths of 4 km or deeper and, utilising natural heat deep within the Earth’s crust, returned to the surface at supercritical conditions to power a turbine and generate energy. Introduced by committee Chairman Frank Lucas (R) and Representative Andrea Salinas (D), the bill also ensures that supercritical geothermal technologies will receive grants for testing, and fosters collaboration between DOE and other agencies. The Committee on National Resources is also set to consider the bill, after which it will advance to the chamber’s floor for a vote.


Net zero wager – Royal Ascot is teaming up with CUR8 to remove 138 tonnes of CO2 to mitigate the residual emissions of the first ever ‘Net Zero Village Enclosure’ at Royal Ascot, making it one of the first racecourses to do so. Ascot is a signatory to the UN Sport for Climate Action Framework, aiming to halve its CO2 emissions by 2030 and achieve net zero by 2040, and says that it will continue to invest in carbon removal as part of its long-term pledge to net zero. This carbon removals initiative will complement the emissions reductions efforts implemented by the British racecourse over the past few years including reducing waste and single-use plastic, using 100% renewable energy, and water and lighting efficiency. The portfolio comprises a range of carbon removal projects including biochar, direct air capture, and enhanced rock weathering. The partnership follows others CUR8 has established with big events including London Marathon Events, The British Royal Family Events, and The 1975 concerts at The O2 Arena.

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