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TOP STORY

EU countries reach common stance on green corporate claims

The EU’s 27 environment ministers reached a common position on the EU’s Green Claims Directive on Monday, introducing a new definition for climate-related claims that distinguishes between “contributions” to greenhouse gas reduction efforts and those relying on carbon “offsets” such as reforestation projects.

EMEA

EU gives final green light to Nature Restoration Law in ‘historic’ move

EU environment ministers agreed on Monday to green-light a regulation that aims to restore natural habitats, ending a year-long legislative back-and-forth in what campaigners hailed as an “historic step” in the fight against the biodiversity and climate crises.

EU climate ministers widely endorse 2040 90% GHG reduction target

Most EU leaders expressed their support for the 90% greenhouse gas emissions reduction target by 2040, put forward by the European Commission earlier this year, in a meeting on Monday.

INTERVIEW: Nascent methane certification market set for surge with new EU reporting rules

New EU reporting requirements for imports of certain goods could soon fuel a small, nascent voluntary trading market for one potent climate-warming pollutant — methane — and help to clamp down on its emissions.

Coalition forms to fight for forest-based voluntary projects in EU carbon removals policy

A group of voluntary carbon market entities launched a coalition Monday to lobby for forestry credits to be better represented as part of the EU’s removals framework.

EU scientific advisors tell newly-elected Parliament to stay the course on climate

While political priorities may shift following the 2024 European elections, the science remains clear: Europe must maintain momentum towards achieving its climate objectives, the EU’s scientific advisors said in a note to newly-elected MEPs on Monday.

Euro Markets: EUAs steady ahead of options expiry in quiet trading as UKAs rise to eight-month high

With the June options contract expiry just two days away, European carbon prices appeared to find a level with sellers’ efforts to drive prices lower running into more robust buying interest, leaving EUAs lagging behind a steeper drop in natural gas and seeming to confirm that the correlation between the two prices has temporarily been broken, while UKAs rose to settle at an eight-month high.

AMERICAS

NYCI electricity coverage, facility-specific caps could protect disadvantaged communities and prevent leakage -report

A report published Monday by a US-based nonprofit found that obligating the electricity sector and including facility-specific caps under New York’s future cap-and-invest programme (NYCI) – which is set to exclude the use of offsets – would help to reduce leakage and protect disadvantaged communities (DACs) from the adverse effects of greenhouse gas (GHG) emissions.

California watchdog discusses price uncertainty of cap-and-trade as formal rulemaking nears

Recent public workshops and literature published by California regulator ARB demonstrate significant uncertainty in the price pathway forward for the state’s cap-and-trade scheme, while legislative developments could also complicate programme extension, the state’s carbon market watchdog said Monday.

RGGI Market: Traders wary of a price plunge after RGAs set new highs

Market participants expressed trepidation over the possibility of a dive in RGGI Allowance (RGA) values after prices retreated from their peaks at the end of the week.

ASIA PACIFIC

PREVIEW: New Zealand unlikely to sell any NZUs at upcoming auction, participants say

New Zealand market participants have all but written off any chance Wednesday’s government NZU auction will clear due to the secondary market trading at prices below the auction price floor amid ongoing regulatory uncertainty.

Australia, China to resume climate change and energy dialogue, as critical minerals partnerships on the agenda

China and Australia have signed an updated Memorandum of Understanding (MoU) to cooperate more closely on climate change and energy, the two countries announced Monday.

NZ warned it risks repeating past mistakes on ETS settings, consultation

New Zealand emissions trading scheme observers have raised concerns with the government’s consultation process on its controls and settings, saying the lack of detail on key points makes it difficult to understand the coalition’s intentions.

INTERNATIONAL

BRIEFING: Bonn climate talks – a ‘detour’ on the way to Baku?

Stalled talks on a new goal for global climate finance marred tentative progress made on Article 6 negotiations at the mid-year UN climate summit in Bonn last week, which also saw the historic December agreement made by countries to transition away from fossil fuels pushed into the background, observers said.

Climate sidelined at latest gathering of G7 leaders

The G7 summit closed on Saturday without any significant progress on climate and energy, leaving ambitions unchanged from resolutions adopted at previous meetings.

VOLUNTARY

Voluntary carbon project developer shuts down, lays off remaining staff -media

An ocean carbon removal project developer has shut down and abruptly laid off all remaining staff on Friday, local media reported, as the firm said it has suffered from a collapse in voluntary carbon prices.

VCM Report: Flurry of CCP offers seen, but voluntary carbon market still quiet

Light trading volumes and a slide in carbon credit retirements continued to sap confidence in the voluntary market last week, even before the usual slowdown over the summer holiday season has started.

Native forest restoration firm sells first voluntary carbon credits from global accelerator

A native forest restoration firm announced on Tuesday that it had sold the first carbon credits generated from its global accelerator.

Nature-based climate solutions gain traction in Global South cities, but challenges remain -report

Nature-based solutions (NBS) are being increasingly adopted to address urban environmental challenges in cities across the Global South, but significant obstacles remain, particularly in the areas of policy alignment and community participation.

BIODIVERSITY (FREE TO READ)

Global credit market could slash costs of ocean conservation by 98%, study says

Establishing a voluntary market-based scheme that allows countries to trade ocean conservation credits could reduce the costs of marine protection by up to 98%, incentivising governments to achieve their biodiversity targets, a paper has said.

Biodiversity among top concerns for companies under CSRD requirements, PwC survey shows

Biodiversity is among the biggest concerns for companies grappling with corporate disclosures, with a quarter of them lacking confidence in their ability to meet the requirements set out by the EU’s Corporate Sustainability Reporting Directive (CSRD), a PwC survey has revealed.

Without mindset change, biodiversity credits are only good for marketing, Landbanking Group founder says

A radical mindset change in how companies address their dependencies on nature is key to ensuring biodiversity credits emerge as an effective solution to tackle ecosystem and species loss, the founder of Germany-based tech startup Landbanking Group told Carbon Pulse.

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CONFERENCES

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

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Job listings this week

• *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
• Global Head of Carbon Sales, Sistema.bio – Remote (Europe/Kenya)
• Natural Capital Project Manager, Gondwana Carbon – Sydney
• Ecologists, Australia Integrated Carbon – Perth

*Premium listings

See all listings or post a job

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BITE-SIZED UPDATES FROM AROUND THE WORLD

INTERNATIONAL

Heat warning for Olympians – Athletes are warning that the intense heat during this summer’s Paris Olympics could cause competitors to collapse, or even die. Eleven Olympians teamed up with climate scientists and heat physiologists from the University of Portsmouth to set out five recommendations for sporting authorities in a report, Rings of Fire, released on Tuesday. They include: smarter scheduling to avoid heat extremes; improving rehydration and cooling plans for athletes and spectators; empowering athletes to speak out on climate change; boosting collaboration between sporting bodies and athletes on climate awareness campaigns; and reassessing fossil fuels sponsorship in sport. The 2021 Tokyo Games are known as the hottest in history, with temperatures exceeding 34C and humidity reaching nearly 70%. The Paris games could surpass that, the report warned.

EMEA

Old friends – Labour is exploring how to realign the UK’s carbon regime with the EU if it wins the general election next month, senior party figures told the FT, a move that would be welcomed by the country’s heavy industries but could be politically controversial. British exporters have warned that they could end up paying hundreds of millions of pounds extra in future because the UK’s carbon price is at present lower than the EU’s under their respective ETS schemes. The UK is also working on establishing a CBAM, while Brussels has already implemented its own leakage mechanism. One representative of British industry told the newspaper they had already received recent private assurances from three shadow ministers’ teams that Labour intends, if elected, to align both the ETS carbon market and the CBAM with that of the EU. Britain is due to hold a general election on July 4 with opposition party Labour currently leading the polls by a wide margin.

EU ETS aviation review – The European Commission published a call for tender on June 14 for research and consultancy services related to the implementation of ICAO’s CORSIA scheme for carbon offsetting. The analysis is aimed at supporting the Commission for the revision of the ETS Directive for aviation, due by July 1, 2026. Currently, only intra-EU flights are covered by the ETS, and EU legislators have tasked the Commission to review how third countries have implemented CORSIA. The analysis should also cover environmental and climate impacts of short-haul flights, private- and business jet flights, and ways to reduce those – also including Iceland. The other part of the tender relates to analysis on short-haul, business- and private jet flights on the existing EU ETS for aviation, and how this contributes to the EU’s climate target for 2030.

Cleaner ports – The European Commission has approved, under EU state aid rules, a €570 mln Italian scheme to incentivise ships to use shore-side electricity when they are at berth in maritime ports. The scheme will run until Dec. 31, 2033. Under the scheme, the aid takes the form of a reduction of up to 100% of the so-called ‘general system charges’. The reduction will result in a lower electricity price for ship operators when purchasing shore-side electricity.

What’s yours is mine – Serbia is preparing to give Rio Tinto the green light to develop Europe’s largest lithium mine two years after Belgrade called off the project, paving the way for a significant boost for the continent’s electric vehicle industry, the FT reports. President Aleksandar Vucic said that “new guarantees” from the Anglo-Australian miner and EU looked set to address Serbia’s concerns over whether necessary environmental standards would be met at the Jadar site in the west of the country. In an interview with the newspaper, Vucic indicated that he was confident he would also secure the necessary commitments from EU leaders for related investments in Serbia, such as battery manufacturing and electric vehicle production.

Big talk – Norway has said it will increase its CO2 tax and spend NOK 35 bln on offshore wind, though provided very few further details. The governing parties agreed on a revised national budget, during which they pledged to speed up the development of offshore wind and raise the country’s carbon tax, but without providing timelines or totals. Norway was one of the first countries in the world to introduce a carbon tax, in 1991. The tax is levied on all combustion of gas, oil, and diesel in petroleum operations on the continental shelf and on releases of CO2 and natural gas. For 2024, the carbon tax is NOK 1.85 per standard cubic metre of gas and NOK 2.10 per litre of oil or condensate. For combustion of natural gas, this corresponds to NOK 790 per tonne of CO2. For emissions of natural gas to air, the rate is NOK 16.89 per standard cubic metre. Norwegian installations are also subject to the EU ETS carbon price.

ASIA PACIFIC

A first – Japanese conglomerate Marubeni on Monday announced it has produced a first batch of sustainable aviation fuel (SAF) under its so-called “co-processing pathway”, which mixes petroleum-derived feedstocks with used cooking oil produced by Korean refiner HD Hyundai Oilbank. The SAF has been supplied to All Nippon Airways from Marubeni Ennex’ Chiba terminal, the company said.

Mixed outlook – Climate development finance in Southeast Asia dropped 15% in 2022 despite increased policy emphasis from the international community, according to think tank the Lowy Institute’s SEA Aid Map, published Monday. It said for the second year development finance for renewable sources of energy exceeded spending on non-renewable energy projects in the region. However, this was due to decreased spending on fossil fuel projects, rather than increased renewable energy investments. Annual climate-related development finance disbursed totalled $8.1 bln between 2015-2022, compared to the $210 bln per year required through to 2030, it said.

Sustainable development plan – Tasman Environment Markets (TEM) and Pacific Forest Alliance announced they launched a five-year sustainable development plan for the April Salumei REDD+ project in Papua New Guinea. It said the plan would systematically invest carbon finance into structured, long-term social development programmes with a commitment to providing lasting community benefits. It said the plan was informed by community and landowner consultation, including women and young children, focus groups, and interviews. Focus initiatives will include community capacity building, improving access to education and health outcomes.

Canada’s support – The Canadian government and the Asian Development Bank (ADB) on Monday launched their partnership to establish a C$360 mln ($262 mln) trust fund for private sector-based climate initiatives in Asia and the Pacific region. The Canadian Climate and Nature Fund for Private Sector in Asia (CANPA) will help to introduce viable projects to the market, particularly those that were “unlikely to proceed solely on a commercial basis”. ADB will administer CANPA on behalf of Canada to support private companies’ GHG reduction plans and improve their climate resilience. CANPA will also finance nature-based solutions to protect, manage, and restore ecosystems, such as sustainable agriculture and aquaculture. The partnership follows two other joint initiatives between the Canadian government and ADB: an $85.5 mln Canadian Climate Fund for the Private Sector in Asia (CFPS) in 2013, which was extended in 2017 under CFPS 2 to provide an additional $150 mln for 14 climate finance investments across Asia.

AMERICAS

Brazilian ETS timeline – A bill establishing a nationwide cap-and-trade scheme in Brazil may advance in the Senate in the coming weeks, reported O Brasilianista. Senator Leila Barros (PDT-DF) is reportedly working to facilitate a vote on the bill prior to the legislature’s recess in July. The stalled ETS legislation now sits in the Senate after it was approved by the Chamber of Deputies in Dec. 2023, where Deputy Aliel Machado (PV-PR) oversaw a maneuver in which the proposal was officially attached to an older piece of legislation, making the final version subject to the Chamber authorisation rather than the Senate. This has upset some senators, with Senator Rodrigo Pacheco (PSD-MG) currently working to address the move. In May, a paper from LSEG Data & Analytics found that the ETS proposal passed by the Chamber – which expanded the role of the VCM – may cloud the country’s wider climate ambitions due its enhanced inclusion of sometimes controversial REDD+ credits.

Auction proceeds fall short – Washington has fallen short of its original predictions of how much money its cap-and-invest programme would raise in H1 2024, reported Cascade Public Media. The actual total for H1 is $324.5 mln. Late last year, state officials predicted that carbon pricing auctions would raise $941 mln in H1 2024. But auction prices have dropped dramatically. During 2023, quarterly auction prices ranged from $48.50 for one metric tonne of carbon in Q1 to $63.03 in Q3. In 2024, the Q1 auction price was $25.76 per allowance, which raised $135.5 mln. The Q2 auction price — announced Wednesday — was $29.92 per allowance, raising $189 mln.

ECY on offsets – Washington’s Department of Ecology (ECY) announced Monday it has extended the informal comment period for the cap-and-invest offsets rule to Sep. 27 at 2359 PST from its initial June 30 deadline. The ECY is looking to amend its cap-and-invest offset provisions under the Climate Commitment Act, and may consider adding or updating protocols to expand the variety of offset projects that can be developed within the state’s cap-and-trade scheme. The agency is also holding the final public meeting on June 25 to provide information regarding the rulemaking and seek input. The ECY aims to adopt the updated rule by spring 2025.

AND FINALLY…

Dengue in Europe – Cases of dengue fever are rising in Europe, as climate change fuels the spread of invasive mosquitoes, the BBC reported, citing findings from the European Centre for Disease Prevention and Control (ECDC). The number of people diagnosed with dengue in Europe jumped from 71 to 130 between 2022 and 2023, from only 73 between 2010 and 2021. The effects of climate change in Europe are creating more favourable conditions for invasive mosquitoes, the ECDC said. The Asian tiger mosquito, which spreads the disease, now has self-sustaining populations in 13 European countries, mostly southern including France, Italy, parts of Spain, and Greece. Additionally, the number of places in Europe reporting cases of the West Nile virus, which is also spread by mosquitos, is at its highest since 2018, the centre found.

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