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TOP STORY
Swiss entity estimates 15 mln ITMOs from current Article 6 carbon pipeline, paying nearly $40/t
A Swiss organisation, working on international Article 6 carbon programmes with host nations, expects they will generate an ITMO supply of 15 million tonnes by 2030, according to a report published Tuesday, paying nearly $40 per tonne for a large proportion of the forecast volume.
EMEA
BRIEFING: ETS2 debate heats up ahead of EU leaders’ summit in Brussels
Poland’s development funds and regional policy minister, Katarzyna Pelczynska-Nalecz, was the latest to call for reforming the EU’s carbon pricing scheme for transport and heating fuels (ETS2), calling on EU leaders to address the issue when they meet in Brussels later this week. Carbon Pulse brings an overview of key positions in the debate.
INTERVIEW: EU should stand firm on demanding transparency in int’l carbon markets, former top official says
The EU should stand firm on its demand for transparency in the Paris Agreement’s Article 6, as without it, the entire international carbon market system could fail, the bloc’s former top climate official told Carbon Pulse in an interview.
Denmark rolls out major initiatives to cut agricultural carbon emissions, restore nature
The Danish government and leading industry, agriculture, and environmental groups have agreed a major strategy to cut carbon from agriculture and restore nature that includes a tax on livestock emissions, conversion of farmlands to forest, and biochar subsidies.
Most EU countries set to miss deadline for national energy and climate plans
The EU’s 27 member countries are running out of time to submit their National Energy and Climate Plans (NECPs), with only a few expected to meet the official deadline at the end of this week.
Carbon capture firm kicks off pilot at cement plant in Italy
A UK-based carbon capture provider has launched a pilot plant at a cement facility in Italy, advancing its offering to help the the industry to decarbonise.
Euro Markets: EUAs recover after testing technical low as UKAs rise the most in three weeks
European carbon prices snapped a three-day losing streak on Tuesday, shrugging off an early decline to an eight-week low in early trading to rally above a technical resistance level in the afternoon, while natural gas moved higher even as TTF prices remain within their recent range and UKAs posted their largest gain in more than three weeks.
VOLUNTARY
Brazilian police probe uncovers new carbon projects, plus hydroelectric, logging plans -media
An ongoing probe by the Brazilian federal police (PF) has uncovered new projects by a group already under investigation for suspected carbon fraud, and evidence has come to light that those involved also allegedly intended to install and operate hydroelectric plants illegally, as well as engage in illicit wood harvesting, according national media reports.
Gold Standard releases global carbon markets policy tracker
Gold Standard, a global certifier and standard-setter for the voluntary carbon market, has launched a new public tracker for carbon market regulations around the world.
Experts update UN guidance on cookstove carbon crediting calculation
The number of carbon credits generated from cookstove projects could be set to tumble after the UNFCCC released an updated expert report on the key emissions reduction calculation rate.
Swiss carbon removal project developer raises $69 mln to scale capacity
A Switzerland-based carbon removal and storage provider has raised $69 million in a funding round to bolster plans to ramp up capacity and expand in North America and Asia.
Vast majority of corporates ignore supply chain emissions in net zero targets
A report published Tuesday found that 85% of corporates have not set a net zero target that takes into account supply chain emissions.
UK forest carbon fund to complete afforestation plans within 12 months
A British forest carbon fund is on course to finish its tree-planting programme by “spring 2025”, it announced in an annual investor report Tuesday, though a lack of available equity has held the firm back from acquiring more planting land to continue the scheme beyond this date.
Multi-faceted carbon removal startup secures first offtake deal for biochar credits
A North American carbon dioxide removal (CDR) startup that mixes various technologies has secured its first offtake agreement for biochar credits.
DGB Group cut stake in forest investment platform Corekees, now valued at €5 mln
Offset project developer DGB Group on Tuesday announced the sale of a 40% stake in tree-focused retail investment platform Corekees.
AMERICAS
Virginia RGGI repeal challenge from green group proceeds on merits
A new judge in a Virginia county circuit court ruled Monday that a green group’s case opposing the state’s withdrawal from the RGGI carbon market has standing to proceed with two claims moving forward.
Advisory committee members oppose DEQ’s proposal to allow for-profits to serve as CCI entities
Advisory committee members opposed the Oregon Department of Environmental Quality’s (DEQ) plans to allow for-profit companies to implement projects supported by Community Climate Investment (CCI) under the Climate Protection Program (CPP), at a meeting Tuesday.
Trade group pitches US EPA to boost RFS volumes
A clean fuels trade group petitioned the US Environmental Protection Agency (EPA) on Tuesday to increase Renewable Fuel Standard (RFS) volumes for 2024 and 2025 based on actual production output.
Iowa regulators approve construction permit for CO2 pipeline
The Iowa Utilities Board (IUB) on Tuesday approved an application for a construction permit of a proposed CO2 pipeline in the state.
State judge rejects effort to toss out Colorado local governments’ lawsuit against oil majors
A Colorado state court judge denied on Friday requests to dismiss a lawsuit from a city and county seeking damages from fossil fuel firms for the impacts of climate change.
US retailers slammed for lack of sustainable products amid escalating deforestation concerns
US retailers are under fire for not providing sustainable alternatives to products such as toilet paper and paper towels that are contributing significantly to global deforestation and climate change, according to a new report.
ASIA PACIFIC
NGOs call on Malaysian exchange to drop ‘questionable’ Sarawak project
A group of 54 international non-governmental organisations (NGOs) have urged Bursa Carbon Exchange (BCX) to drop a controversial project in Malaysia from being listed on the platform amid claims that it has harmed biodiversity and violated Indigenous rights.
Korean tech firm, Japanese exchange operator partner to accelerate Asian voluntary carbon market
The tech arm of a South Korean conglomerate has partnered with a Japanese carbon exchange operator to drive expansion of voluntary carbon trading across Asia, they announced Tuesday.
Australian regulator fines carbon developer hopeful over greenwashing allegations
An Australian fertiliser company has been fined for greenwashing by the country’s market watchdog over claims it made regarding its aspirations to develop a reforestation carbon project in the Philippines.
South Korea to prepare infrastructure for consignment emissions trading
South Korea’s environment ministry is teaming up with the country’s major stock exchange to establish a consignment transaction system for the domestic emissions market.
Use of renewables-based electricity can cut India’s heavy industry emissions by 17% -report
India can slash 17% of its carbon emissions from heavy industries by 2030 through the use of renewables, a report released Wednesday has found.
INTERNATIONAL
UN climate adviser doubles down on call for ‘solidarity levies’ from polluting industries
Countries need to look to new sources of climate finance including “solidarity levies” on sectors such as shipping, aviation, and fossil fuels extraction, the UN’s special adviser on climate change said on Tuesday.
AVIATION
Lufthansa to make customers share environmental cost burden
A German air carrier will make customers pay for rising costs related to environmental regulations through the introduction of an environmental surcharge to apply to departures from January 2025.
SHIPPING
Oil and gas initiative joins forces with shipping group to decarbonise sector
An oil and gas group has teamed up with a clean shipping industry body to work on solutions to decarbonise the sector, including a focus on carbon capture on ships, they said Tuesday.
BIODIVERSITY (FREE TO READ)
Portuguese aquaculture firm eyes biodiversity credit market to scale funding
A Portugal-based aquaculture company is conducting a study to evaluate the ecosystem services provided by its bivalve farm to venture into the biodiversity credit market, as it says investments in the industry are still insufficient.
Singaporean company secures ‘first-of-its-kind’ TNFD-aligned loan
A Singapore-based real estate company has secured a S$400-million ($295 mln) sustainability-linked loan (SSL), which incorporates targets on biodiversity conservation aligned with the Taskforce on Nature-related Financial Disclosures (TNFD) recommendations.
Biodiversity Pulse: Tuesday June 25, 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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CONFERENCES
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COURSE
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BITE-SIZED UPDATES FROM AROUND THE WORLD
INTERNATIONAL
Confidence in COP – The President of COP29, Mukhtar Babayev, Azerbaijan’s Minister for Ecology and Natural Resources, is confident in the potential for this year’s UN Climate Summit, known as “the Finance COP”, to set a new climate financing target to support developing countries and small island developing states. “We must demonstrate that the world is ready to work together to support each other. This is a very critical time, not only for Azerbaijan but for the entire world, to find solutions,” he told Forbes in an interview. At COP29, nearly 200 nations will strive to agree on a new financing target— the New Collective Quantified Goal (NCQG)— to replace the $100 bln annual pledge from wealthy countries to support poorer countries between 2020 and 2025 in reducing emissions and tackling climate change. Situated in Azerbaijan, at the crossroads between the East and West, and South, COP29 can be the bridge that helps to re-establish trust between the Global North and the Global South, said Babayev.
Better together – The OPEC Fund for International Development (the OPEC Fund) and the UN’s International Fund for Agricultural Development (IFAD) have agreed to expand their partnership on the co-financing of projects that enhance food security and build climate resilience, providing vital support to smallholder farmers. The long-standing cooperation between the two shall be enhanced with greater knowledge sharing and close coordination to increase the efficiency of co-financed projects, said today’s statement. The agreement was signed in Vienna at the 2024 OPEC Fund Development Forum by OPEC Fund President Abdulhamid Alkhalifa and IFAD President Alvaro Lario.
EMEA
Deal on EU top jobs – Ursula von der Leyen is set to be nominated later this week for a second mandate at the helm of the European Commission after a political agreement was reached on Tuesday between negotiators from Europe’s three main political families – the centre-right European People’s Party (EPP), the Socialists and Democrats (S&D) and the centrist Renew Europe – report Euractiv, Politico and Le Monde. The deal will be sealed at an EU summit on June 27-28 and includes two other positions: the Presidency of the European Council bringing together the 27 heads of states will go to former Portuguese PM Antonio Costa (S&D) and the role of EU high representative for foreign affairs will go to Estonia’s PM Kaja kallas (Renew). Von der Leyen’s first mandate was marked by the adoption of a European Green Deal that saw the EU pass binding legislation to reach climate neutrality by 2050 and cut net greenhouse gas emissions 55% below 1990 levels by 2030.
Power of hindsight – The EU’s response to the 2022 gas crisis failed to deliver on affordability or to deliver a plan for the long term, according to a report by the bloc’s auditors. 2022 saw Europe scarred by a six-fold increase in gas prices, and EU countries rushed to subsidise bills, yet the European Court of Auditors found that the EU’s contribution cannot be readily identified and that cross-country solidarity rules need work. The EU’s reduced gas consumption could just have been due to the price surge rather than linked to the bloc’s 15% demand reduction target, while the increased storage obligations mostly reflected historical trends, the report found. AggregateEU, the EU’s joint gas purchasing mechanism, was slammed most strongly by the auditors who could not find “added value” provided by the platform compared to established market mechanisms. (Euractiv)
Green funds for polluting firms – Investors in Europe have poured a combined $87 bln into ‘green’ funds that often ended up with polluting companies, according to a new investigation by Voxeurop and European Investigative Collaborations. The researchers analysed over 4,000 ‘green’ funds under Article 8 or 9 of the EU’s Sustainable Finance Disclosure Regulation. Among the top 10 recipients were oil companies and carmakers such as Toyota, which received €3 bln despite having a zero-emissions vehicle (ZEV) share of just 2%. Another was Airbus whose aircrafts run on fossil fuels for more than 99% of them. “Today’s investments in Total, Toyota or Airbus cannot be considered green,” said Xavier Sol from clean mobility group Transport and Environment (T&E). “Only investments earmarked for green activities, like zero-emission technologies, should be given a sustainable label,” he added, urging the European Commission to swiftly revise its Sustainable Finance Disclosure Regulation to prevent greenwashing.
Net zero hub – The UK Labour Party would create a new government office dedicated to net zero in order to push forward the green transition if it wins the general election next week, Sky News reports. It is not yet clear whether the new office would sit within the Cabinet Office – one of the key control centres in government alongside Number 10 and the Treasury – or under the the existing Department for Energy Security and Net Zero (Desnez). The current department, established in Rishi Sunak’s reshuffle last year, has general oversight over net zero policies but does not have a formal delivery function across government. The Labour Party manifesto commits to decarbonising the country’s power system by 2030 – five years earlier than the Conservatives.
ASIA PACIFIC
Room for improvement – UNESCO wants Australia to set more ambitious restoration and conservation targets for the Great Barrier Reef, as part of a list of recommendations to retain its status as a world heritage site, the Guardian reported. The report said the Australian government will be asked to submit a progress report by Feb. 2025, after which the committee will consider if it is ‘in danger’. The threat of this status has issued over the reef for years, as rising temperatures cause coral bleaching events. UNESCO added it had ‘high concern’ over the rates of land clearing in catchments that flow into the reef, saying it was ‘incompatible’ with targets to cut sediments and nutrients running into the reef.
Bank bucks – Bank of New Zealand has announced a commitment of NZ$4 mln ($2.5 mln) to the private sector-government partnership to reduce methane emissions, AgriZeroNZ, with the government matching the contribution. The partnership, which now has combined funding of NZ$191 mln, aims to ensure NZ farmers have access to affordable, effective solutions to reduce biogenic methane and nitrous oxide emissions. It has a goal to reduce emissions by 30% by 2030 and ‘drive towards near zero’ by 2040. The partnership has committed more than NZ$29 mln into emissions reduction solutions, and is eyeing 77 potential investment opportunities.
Green steel targets – South Korea’s Hyundai Steel has signed a Memorandum of Understanding (MoU) with auto parts maker Tawesco, based in the Czech Republic, and Eusider, an Italian processor of automotive steel sheets, to sell low-carbon steel sheets, in response to the EU’s Carbon Border Adjustment Mechanism (CBAM) and growing corporate interest in carbon neutrality. The two companies supply steel materials to major European car manufacturers such as Volkswagen and Stellantis, which have set carbon neutrality targets they need to meet and hence are seeking green materials.
AMERICAS
NEPA under review – The US Supreme Court opened the door Monday to setting new limits for how agencies account for climate and environmental risks for new projects, reported Greenwire. The newly granted petition – Seven County Infrastructure Coalition v. Eagle County, Colorado – challenges the breadth of analysis required under the National Environmental Policy Act and is among the first environmental cases the Supreme Court has agreed to hear next term. In the last three terms, the justices have narrowed EPA’s authority to regulate climate pollution, reduced protections for the nation’s wetlands, and are poised to weaken the Chevron doctrine, which helps the federal government defend environmental rules in court. (E&E News)
ECY working group – The Washington Department of Ecology (ECY) will hold its first Forest Offset Technical Working Group meeting on July 2 from 900-1100 PST (1700-1900 GMT). The group is comprised of individuals with expertise in the development, registration, verification, or analysis of compliance or voluntary forest offset projects. It is intended to help inform ECY’s rulemaking related to revisions to the adopted ARB’s Compliance Offset Protocol – US Forest Projects. According to the agenda, potential revisions to be discussed at the first meeting include those related to eligibility, reversals, conservation easements, verification and monitoring, baselines, forest management requirements, and inventorying and sampling. The group will meet the first Tuesday of every month for the rest of the year. The meetings will be open to the public. Register to attend via Zoom here.
NY targets building emissions – New York Gov. Kathy Hochul (D) announced Tuesday $10 mln is now available for large-scale thermal projects that reduce GHG emissions from heating, cooling, and hot water in buildings. The new Large-Scale Thermal Program will competitively award funding to colleges and universities, multi-family complexes, medical campuses, and communities for projects that use heat pumps and low-carbon thermal resources such as geothermal, wastewater, waste heat, surface water, and thermal energy storage to effectively integrate different clean heating and cooling systems and equipment into their buildings. Project sites may consist of a single large building or multiple co-located buildings, either existing or new construction.
CCS cost challenge – Developers of Project Tundra – a project that envisions capturing up to 4 Mt of CO2 annually from the coal-fired Milton R. Young Station in North Dakota – told E&E News they are delaying a final decision on construction due to challenges such as the US EPA’s recently finalised power plant emissions standards. Originally aiming for a decision midway through this year, the developers are now targetting the end of year for such a move after projected costs rose to $2 bln from $1.4 bln. The project is led by TC Energy, Minnkota Power Cooperative, Mitsubishi Heavy Industries, and Kiewit, according to its website.
Hydrogen hype – Heather Reams, president of the Citizens for Responsible Energy Solutions (CRES), and Rebecca Lorenzen, senior policy manager at CRES, highlighted hydrogen’s ability to reduce emissions and enhance US manufacturing in an op-ed in the Chicago Tribune. According to CRES, hydrogen could reduce energy-related emissions in the US by 10-25%, but project development needs support. The group said the Biden administration’s proposed 45V hydrogen tax credit plan is overly strict, as it would limit hydrogen producers using natural gas paired with carbon capture as a feedstock from accessing the tax credit, for example. This would discourage investment in hydrogen, according to CRES. The group endorsed articulation of a clear export strategy, a more flexible, phased-in tax credit, and streamlining of the permitting process, amongst other proposals.
VOLUNTARY
Two for the price of one – Verra has released an updated guidance document for proponents of projects in the Verified Carbon Standard (VCS) Program that are also certified with the W+ Standard Program and are seeking to apply a W+ label to Verified Carbon Units (VCUs) generated by their project. The W+ label signals that a VCS project conforms with the requirements of the W+ Standard, which provides metrics to quantify, verify, and monetize women’s empowerment results within projects and supply chains. Any VCS project that conforms with both the requirements of these Verra program(s) and the W+ Standard for registration, validation, and verification is eligible to receive VCUs with a W+ label.
Travertine funding – Climate tech startup Travertine has closed an $8.5 mln financing round, with the funds set to help commercialize The Travertine Process, which produces carbon-negative industrial chemicals, green hydrogen, and captures CO2 – enabling generation of carbon credits and permanent carbon storage as a possible feedstock for greener cement. The process includes upcycling sulfate waste into a fossil-free version of sulfuric acid, using onsite direct air capture to capture CO2 and turn it into carbonate minerals, and the production of green hydrogen as a byproduct. The financing was co-led by building materials company Holcim via its VC arm, and also included participation from Clean Energy Ventures, Bidra, and the Grantham Foundation.
Hemp hemp hooray – Canadian hemp manufacturer Hempalta is developing biochar derived from industrial hemp to bring to market and also announced the sale of carbon removal credits via its voluntary carbon standard, the firm announced Tuesday as part of its corporate updates. Hempalta produces biochar via recycling industrial hemp biomass at its production facility in Calgary or onsite at farmers’ fields, the company said. Additionally, Hemp Carbon Standard, of which Hempalta owns a 50.1% stake, sold 514 carbon removal credits to blockchain firm Concordium, generated via industrial hemp.
INVESTMENT
And it’s live! – Germany’s LiveEO, which uses high-resolution satellite data and AI to transform raw satellite data to help companies manage their climate risks and resilience, has raised €25 mln in Series B funding. The round was led by NordicNinja and DeepTech & Climate Fonds (DTCF). This investment will accelerate the development of the startup’s solution, and expand its team. Founded in 2018, LiveEO is on a mission to transform vast amounts of satellite data into actionable insights.
SCIENCE
Amazon drought – The Amazon rainforest will remain susceptible to drought even if atmospheric CO2 concentration is lowered, according to a recent study published in the Journal of Environmental Sciences. Led by Prof. Gang Huang from the Institute of Atmospheric Physics at the Chinese Academy of Sciences, the study found that reduced rainfall – a phenomenon expected to increase with climate change – over the Amazon basin does not recover under a CO2 reduction scenario due to enhanced El Niño-like warming in the tropical Pacific Ocean. According to the study, this warming pattern has dual effects: weakening the zonal circulation and causing anomalous descent directly over the Amazon basin. This anomalous ascent induces anomalous descent and weakens moisture transport over the Amazon basin by the local meridional circulation. Consequently, precipitation is reduced over the Amazon basin in response to the weakened zonal and meridional circulation, and the valuable Amazonian ecosystem will remain susceptible to drought, authors concluded.
AND FINALLY…
Eco-friendly Glasto – Festival-goers can follow six simple tips for reducing their environmental footprint as they enjoy the UK’s biggest musical festival, Glastonbury, starting on June 26, according to environmental writing team The Eco Experts. Above all, opt for public transport. Glastonbury attracts 210,000 people a year, and driving there and back can produce 68.7 kg of CO2e per person, the team said. Taking a return bus from London, on the other hand, produces just 11.2 kg. The festival also provides bike lock-ups and cyclist campsites. Also, don’t leave your tent behind – donate them to charity instead. An estimated 250,000 tents are abandoned at UK festivals every year, and up to 90% of those end up in landfill or incineration, both of which emit greenhouse gases. And finally, bring reusable bottles and containers, recycle your litter, and put food waste in the compost bins.
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