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TOP STORY

Brussels frets as far-right arrives at gates of power in France

The European Union could end up being “paralysed” if the far-right Rassemblement National party is able to form a government in France, with potentially significant consequences also for energy and climate policy across the region, according to policymakers and analysts.

EMEA

ANALYSIS: CBAM impact could cut into EU power imports from UK, Western Balkans

Britain’s electricity flows may be the most impacted by the EU’s Carbon Border Adjustment Mechanism (CBAM) as imports sent to the EU are set to become more expensive, with the Western Balkans also poised to be hit hard.

Oxford researchers urge UK-EU ETS linkage to scale cross-border CO2 projects

The EU and UK must rejoin their carbon markets in order to scale cross-border CO2 transport and storage projects, according to researchers from the University of Oxford, who also underlined the political challenges of relinking the two systems.

BRIEFING: UK can learn from other countries on effective climate adaptation

As the UK battles climate change impacts such as flooding, overheating, and more frequent storms that can derail vital infrastructure, the country can learn from other nations like Japan and Australia on developing effective emergency response strategies and disaster resilience.

Euro Markets: EUAs join energy in sharp early relief rally before afternoon sell-off trims gains

EU carbon allowances started the week brightly as Europe’s energy and equity markets rallied in relief at the outcome of the first round of France’s parliamentary elections, before tailing off over the rest of the day as the recent daily pattern appeared to reassert itself, while energy markets gave up all their early gains.

AMERICAS

California state senator withdraws carbon offset greenwashing bill for 2024 legislative session

The author of a California Senate bill intended to provide greater oversight on claims made from the sale of carbon credits has asked an Assembly committee to remove the bill from its agenda, and the proposal will not advance for the remainder of the legislative year, her office told Carbon Pulse on Monday.

RGGI Market: RGAs once again set new highs before retreating, volumes trend downward

RGGI Allowance (RGA) settlement prices hit all-time highs yet again last week amid a persistent bullish outlook for the Third Program Review, despite the ongoing silence from the programme administrator regarding updates to the scheme, before retreating late in the week.

Washington releases draft rule language for cap-and-trade linkage

The Washington Department of Ecology (ECY) on Monday released draft language of the cap-and-trade linkage rule to align the state’s carbon programme with the broader California-Quebec market.

Alaska finalises regulations for state voluntary offsets programme

The Alaska Department of Natural Resources (DNR) has published final regulations set to take effect in July for the state’s forthcoming voluntary offsets programme.

Colombian credit retirements toward CO2 tax well below cap in Q1

Carbon credit retirements towards Colombia’s national CO2 tax remained weak in Q1, per figures presented at a climate summit in Cartagena last week, as domestic supply and demand struggled after media scandals and a volume cap was introduced in late 2022.

LATAM Roundup: LAC awaits Article 6 credits, sees limited ETS progress

Carbon Pulse rounds up June’s developments in Latin American and Caribbean (LAC) carbon markets, seeing two countries score high-priced Article 6 deals with a Swiss agency and several others make minor ETS announcements, though direct taxes continued as the region’s carbon pricing mainstay.

ASIA PACIFIC

World Bank approves $1.5 bln in funding for Indian green hydrogen, carbon markets

The World Bank has approved $1.5 billion in additional financing to help India accelerate the development of its national carbon market, boost green hydrogen production, and scale up renewable energy capacity.

ACCU price forecast to hit A$42 by next year’s compliance deadline, as demand to structurally increase over time, outlook says

An outlook on Australia’s carbon market has forecast credit prices to rise above A$40 ($26.71) by the time the first surrender period under the reformed Safeguard Mechanism rolls around next year and that the scheme means demand will structurally increase as time goes on.

Safeguard Mechanism lays the foundation for Australia’s decarbonisation, but policy misalignment underlines uncertainty, panel hears

Australia’s reforms to the Safeguard Mechanism have been the lynchpin in driving “overwhelming” interest and activity in the country’s carbon market and has spurred some participants to begin to plan their decarbonisation journey, but key questions hang over other parts of the government’s climate agenda.

Korean securities firm secures Paris-aligned water purification project in Ghana

A South Korean securities firm is aiming to expand its carbon finance business through participation in a government-backed international greenhouse gas reduction project, which can generate Paris-aligned carbon credits.

New Zealand lawyer group warns govt its lack of climate action skirts legal requirements

A prominent New Zealand legal group has urged the coalition government to rethink its unwinding of transport emissions reduction policies, saying it was ignoring key aspects of the first Emissions Reduction Plan (ERP) and the Climate Change Response Act.

Australian cookstove project developer raises $3.75 mln from investors

A project developer that seeks to decarbonise cooking with the use of smart stoves has raised $3.75 million in its Series-A round.

Shell trader joins Trafigura carbon desk

A senior carbon trader with Shell has left to join the emissions desk at trading house Trafigura, Carbon Pulse has learned.

VOLUNTARY

VCM Report: Fraud bombshell livens dull summer for voluntary carbon market

Allegations of fraud against one of the heavyweights in the voluntary carbon market shattered a quiet week, with activity already suffering due to the start of the summer holiday season.

Fintech startup launches blockchain REDD+ carbon trading instrument

A New York-based fintech startup has launched a blockchain-based carbon trading instrument for voluntary REDD+ credits, with all projects assessed by a ratings agency and prices published on its exchange platform.

Verra to imminently launch REDD+ voluntary carbon market quality label

Work has been concluded on a new voluntary carbon market quality label for ARR forestry offsets issued under the Verra standard, which is designed to complement other integrity markers for credits, with a formal launch now weeks away, a spokesperson for the crediting body told Carbon Pulse.

INTERVIEW: For suppliers under pressure to cut emissions, renewables still come at a cost

The cost of switching to renewable energy remains a significant barrier for suppliers who are under growing pressure from their big brand-name customers to cut emissions and help to decarbonise wider supply chains, according to a consultancy that is looking to help companies make that change.

Number of companies with science-based targets increased by 102% in 2023, led by Asia -report

Companies with validated science-based targets increased by 102% during 2023 alone compared to all previous years, with Asia leading as the region with the highest number of such companies, a report released Monday has found.

British scientists verify feasability of new ocean carbon removal technology

Scientists from a UK research centre have verified the feasibility and potential scalability of a new ocean carbon removal technique, they said Monday.

BIODIVERSITY (FREE TO READ)

UN proposes global fund for sharing benefits derived from plant, animal DNA sequencing

The UN drafted on Monday a proposal to establish a global fund for sharing some of the multi-trillion dollar revenues derived from products that leverage the use of the DNA sequences of plants, animals, and microbes, known as digital sequence information on genetic resources (DSI).

Biodiversity credit metric can enhance investment in species conservation, study says

A recently developed metric for tradable biodiversity credits has the potential to optimise resource allocation to species conservation efforts, a paper has said.

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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

• *Head of Carbon Project Development (m/f/d) – Volkswagen ClimatePartner GmbH – Munich
• *Manager, Market Strategy & Engagement, Native – Remote (US)
• Greenhouse Gas Inventory & Transportation Section Manager (WMS Band 2), Washington State Department of Ecology – Lacey
• Sales Account Executive, Sustainability and Carbon Offsets, Everland – Brooklyn (Hybrid)

*Premium listings

See all listings or post a job

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BITE-SIZED UPDATES FROM AROUND THE WORLD

INTERNATIONAL

Tariff talk – The US is considering implementing a carbon pricing system on imports to combat emissions and address competition from foreign producers, particularly from China, according to climate envoy John Podesta. In an interview with the FT, Podesta emphasised the need to prevent “freeriding” by countries that do not account for the carbon costs associated with production, which he said unfairly impacts the US industrial base. He highlighted the importance of integrating the carbon footprint of tradable goods like steel, aluminium, cement, glass, and fertiliser into the global trading system. This consideration arises as the EU introduces its Carbon Border Adjustment Mechanism (CBAM) and China contemplates enhancing its carbon permit pricing. Podesta mentioned that no specific policy has been decided yet, but a bipartisan discussion on how to address carbon-intensive imports is underway. The approach aims to leverage America’s relatively lower carbon intensity compared to major emitters like China, India, and Russia, positioning the US to benefit from its cleaner production processes. Additionally, Podesta defended recent US tariffs on Chinese electric vehicles and solar panels, attributing China’s dominance in clean energy sectors to non-market practices and heavy coal usage, which he argues compromise long-term market stability.

HFO ban – A ban on climate-damaging heavy fuel oil (HFO) for ships has come into force in Arctic waters. HFO is particularly damaging in the Arctic as the black carbon it emits when burned speeds up the melting of snow and ice, while the fuel is almost impossible to clean up if a spill occurs. While in colder waters, experts say, the fuel does not break down but sinks in lumps that linger in sediments, threatening fragile ecosystems. The oil was banned from use or transport in the Antarctic in 2011 and environmentalists have been pushing to expand that restriction to northern waters for years, though campaigners say there are far too many loopholes that will limit the impact. Ships that have a “protected fuel tank” will be exempt from the ban, while countries that border the Arctic will also be able to exempt their own ships from the ban in their own territorial waters. These waiver exemptions will last until 2029 with about 74% of ships that use HFO estimated to continue being able to do so until then. (BBC News)

EMEA

Growing share – The share of renewable power in the EU surpassed the 50% mark for the first time ever in H1 2024, according to industry association Eurelectric. Some 74% of power came from renewable and low-carbon energy sources, including nuclear, up from 68% in 2023, it found. In terms of electricity demand in the EU, that decreased by 3.4% in H1 2023 compared to the same period in 2022 and has continued to remain low in the first half of this year, largely due to industry relocation, energy savings, and slow economic growth.

Sharing is not caring – European investors hold shares worth at least $65 mln in major coal firms across China, India, the US, Indonesia, and South Africa within funds designated as “promoting environmental and social” goals under EU rules, an analysis by Climate Home and media partners found. Taken together, these companies emit around 1,393 MtCO2 into the atmosphere every year, putting them among the world’s top five polluters if they were a country. The investments are owned by major financial firms including BlackRock, Goldman Sachs, and Fideuram, a subsidiary of Italy’s largest bank Intesa Sanpaolo. Most firms analysed are signatories of the Glasgow Financial Alliance for Net Zero (GFANZ), whose members pledge to align their portfolios with climate-friendly investment. The asset managers told Climate Home their coal holdings do not contradict EU green policies or the 2015 Paris Agreement to tackle climate change.

End of an era – The power station Ratcliffe-on-Soar in Nottinghamshire, England received its last delivery of coal on Friday, marking the end of an era for the site, which is set to shut at the end of September. Operated by Uniper, the site has produced electricity for 57 years and its final delivery of fuel is enough to generate power for approximately 500,000 homes over eight hours. Uniper is considering transitioning the site into a zero-carbon technology and energy hub for the East Midlands and is also exploring the potential for hydrogen production. (BBC News)

ETS at the pump – EU motorists may have to pay €0.50 or more per litre of diesel from 2031 to cover the extra cost of the new ETS2, which is due to apply to road and building fuels from 2026 or 2027, the Financial Times reported, citing research from Veyt. The firm expects the ETS2 to add €0.14 to a litre of diesel in 2027 and €0.54 in 2031, as the carbon price increases. The price of coal-fuelled heating is expected to rise by €0.68 per kg by 2031, it found.

Under the Italian sun – Global energy commodities trading company Gunvor Group is teaming up with Quercus Real Assets London-based renewable specialist to build up to 3 GW of solar capacity in Italy, including via Power Purchasing Agreements (PPAs), with the solar sites located across Italy. Italy’s power mix is dominated by gas, with 48.4% of its electricity relying on it. Due to its reliance on fossil fuels, Italy’s power sector is a significant source of EU carbon allowance demand, therefore any increase in solar capacity will help lessen demand for EUAs. Italy already has 30 GW of installed PV capacity as of 2023, meaning the companies’ announced capacity would constitute a 10% jump in installed solar power.

CBAM extension – The German emissions trading authority (DEHST) said that CBAM declarants will have a longer period to submit their quarterly reports in July, namely until July 31, “in view of the difficulty of setting up monitoring, reporting and verification systems in good time”.

Ethics misstep – Diederik Samsom, a former EU climate official who helped to orchestrate the Green Deal failed to seek permission from the European Commission before taking a job with a major gas network operator, in defiance of ethics rules, E&E News reports. Samsom recently announced he had accepted the post of chair of the supervisory board at Dutch state-owned firm Gasunie, but that due to an error on his part, the position was not correctly notified to the Commission in a timely manner. Under Commission rules designed to prevent undue industry influence, exiting officials must seek permission from the EU executive to take up a role related to their previous work.

NECP deadline missed – None of the EU’s Central and Eastern European countries met Sunday’s June 30 deadline for submitting their final National Energy and Climate Plans (NECPs) to the European Commission, Euractiv reported. All member states were due to submit final plans taking into account feedback from Brussels on drafts submitted in 2023. None of the drafts from Central and Eastern European countries were found to be strong enough on the phase-out of fossil fuels, NGOs have said. Their planned increase of renewable energy targets, instead, met the bare minimum required, according to CEE Bankwatch.

Life in plastic – Plastics and chemicals firm the Saudi Top Trading Company signed an MOU Sunday with Saudi Arabia’s Regional Voluntary Carbon Market Company, a subsidiary of the state-run Public Investment Fund, for carbon markets cooperation and generation of ‘high-integrity’ credits (Al-Hadath). In a statement to Tadawul, the Saudi Stock Exchange, Saudi Top said that the partnership will bolster carbon trading while reducing emissions in the manufacturing sector. The MOU is valid for a period of 36 months, but no further details have been provided. The Saudi Top website states that the company was founded in 2007 “with a focus on maximizing the value of plastic and rubber waste through the promotion of a circular economy”.

Under the Iraqi sun – The Iraqi Investment Authority issued a first-of-its-kind investment approval for solar energy on Sunday, according to regional energy news outlet Attaqa. An official stated upon the announcement that Iraq must implement the Paris Agreement “in both senses”, including access to carbon markets as well as decarbonisation using renewable energy. The solar facility, with an expected production capacity of around 1,000 MW, is reportedly affiliated with TotalEnergies and will be located in southern Iraq, in Basra Province, near the Artawi oil fields.

ASIA PACIFIC

Recognised – The South Australian government has passed and proclaimed amendments to the Pastoral Land Management and Conservation (Use of Pastoral Land) Act, which confirm carbon farming and conservation projects will be unambiguously reconfirmed as a legitimate land use for state pastoral leases. Pastoral leases make up some 40% of the state. The Australian Land Conservation Alliance (ALCA) said the amendments provided certainty for its member organisations and partners to continue investing in protection, managing, and restoring nature in the state. The changes mean all pastoral land managers now have flexibility to generate alternative revenue sources from carbon farming and conservation, ALCA said.

New listing – Taiwan Carbon Solution Exchange (TCX) on Monday listed credits from an afforestation, reforestation and revegetation (ARR) project in Paraguay, the first green carbon project available on the government-backed trading platform, according to a statement. The exchange, having formed a partnership with carbon standard Verra, recently also started to offer credits from a Myanmar-based mangrove initiative, the marketplace’s first nature-based and carbon removal project.

E-methane progress – Japan’s Tokyo Gas recently obtained certification as a ‘clean gas production facility’ under a regional scheme, the first time that a domestic facility producing e-methane was certified as such a facility, it announced Monday. The gas supplier said it will produce e-methane using CO2 separated and captured from exhaust gas at the Yokohama Resources Recycling Bureau’s Tsurumi Plant in collaboration with Yokohama City and Mitsubishi Heavy Industries Group, using green hydrogen produced by a megawatt-class water electrolysis device as the main materials.

Remove the ad – South Korea’s environment ministry has ruled in favour of non-profit Solutions for Our Climate (SFOC)’s legal action against steel giant POSCO’s greenwashing, SFOC said on LinkedIn. The ministry has issued administrative guidance regarding the advertisement of POSCO’s carbon-neutral brand Greenate, saying that the carbon reduction effect of the steelmaker was exaggerated in the ad campaigns. POSCO was promoting its ‘Greenate Value Chain’ steel products as low-carbon, despite its continued use of coal, SFOC said.

Do it yourself – Malaysia will have to begin implementing its national carbon pricing policies, including carbon tax, before the EU’s Carbon Border Adjustment Mechanism (CBAM) comes into full effect in 2026, country’s deputy minister of investment, trade, and industry has said. The minister has warned that Malaysian exports of steel and other items will be taxed under CBAM by the EU unless Malaysia collects the tax itself, the Malay Mail reported. He added that the tax collections by the Southeast Asian nation should be channelled into green investment, including the investment into green steel within the country.

AMERICAS

California climate bond – California lawmakers released a $10 bln climate bond proposal late Saturday night, teeing up votes ahead of the Wednesday deadline to place borrowing measures on the November ballot, reported Climate Wire. The $10 bln figure represents a best-case scenario for the hundreds of environmental, local government, and social justice organisations backing the proposal, coming in higher than previous draft iterations as low as $6 bln. The final language includes significant increases to the clean energy chapter, including $225 mln increases for port infrastructure related to offshore wind projects ($475 mln) and electric transmission financing ($325 mln); $100 mln for the Community Resilience Centers programme; $125 mln for programmes related to climate-friendly farming and ranching; $200 mln reduction for coastal resilience; and $1.5 bln for wildfire and forest resilience. (E&E News)

Washington whistleblower – Judge Anne Egeler of the Superior Court in Washington has rejected the state’s request to dismiss a lawsuit from Scott Smith, a former employee who claims he was forced out after he flagged that the state’s carbon market could increase gasoline prices, reported E&E News. Judge Egeler, an appointee of Governor Jay Inslee (D), said in a ruling earlier this month the case has merit, and the state now must produce evidence demanded by Smith’s attorney. A state-commissioned investigation in May found that did not force out the former transportation official, who left his job in Nov. 2023.

VOLUNTARY

Big names emerge – Emergent has appointed Joaquim Levy, former Minister of Finance for Brazil, and Werner Baumann, former CEO of Bayer, to its board. They join a group of experts who provide strategic advice and oversight for the US-based non-profit that convenes and coordinates the LEAF Coalition. Emergent and LEAF are now working on structuring the first agreements in Brazil and accelerating corporate financial commitments as part of the Coalition. Emergent signed its first agreements with Ghana and Costa Rica to supply jurisdictional REDD+ credits to LEAF Coalition buyers at COP28 last December. It is now working to sign further agreements in Latin America, Africa, and Asia, it said in Monday’s release, as well as securing additional corporate commitments to purchase credits.

Making your voice heard – Perspectives Climate Group has published a new study assessing the grievance mechanisms of CAR, Verra, ACR, and ART based on the recent developments in their grievance mechanism procedures. The 2024 review found improvements in the CAR, Verra, and ACR grievance processes as well as some relevant positive provisions in the ART mechanism, a LinkedIn post said. Most standards now feature detailed processes with clear phases and timeframes, though most standards still need to improve the visibility and accessibility of the mechanisms, and some of the standards have conditions that might restrict access to their grievance processes, it said.

AND FINALLY…

Bad news for Jill – A study published last month in Nature Climate Change by the Potsdam Institute for Climate Impact Research reveals that climate change could significantly increase the time women spend collecting water. By 2050, under high-GHG emission scenarios, women globally could spend up to 30% more time on water collection due to increased temperatures and reduced rainfall. In South America and Southeast Asia, the time spent could potentially double. The research underscores the gendered impact of climate change, noting that this increased burden could detract from time available for education, work, and leisure, leading to substantial economic losses. Calculations suggest that the cost of lost working time could range from tens to hundreds of millions of US dollars per country annually by 2050. The study, based on data from 347 regions across four continents from 1990 to 2019, highlights how altered rainfall patterns and rising temperatures make water sources less accessible and increase the physical and mental burden of water collection.

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