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UK ELECTION
PREVIEW: Five climate policy changes expected under a UK Labour government
The UK appears set to enter a new era of stronger, better coordinated climate policy and diplomacy under a Labour government – although some changes will be soft, and still fall short of what’s needed to gain ground on the country’s goal for net zero emissions by 2050.
DATA DIVE: The impact on climate of 14 years of Conservative rule in Britain
The UK is facing its first general election in nearly five years on Thursday, with polls positioning opposition Labour leader Keir Starmer as the clear frontrunner to become the next Prime Minister of the country, which would see the right-leaning Conservative government leave power for the first time since 2010.
VOLUNTARY
FEATURE: Legal, scientific scrutiny before ocean carbon-remover Running Tide ran aground
Maine-headquartered Running Tide, the now-shuttered ocean carbon removal project developer, saw only a handful of early buyers and investors patient enough to see through the company’s delivery of voluntary carbon credits, as critics slate and executives defend its efforts to scale up.
Voluntary carbon integrity body slammed for missing additionality failures in more than 400k landfill gas credits
Half of the landfill gas credits issued by the Climate Action Reserve (CAR) likely fail additionality tests, despite the ICVCM approving the related methodology for its Core Carbon Principle (CCP) integrity stamp, according to analysis from a non-profit.
Analysis highlights increased wildfire risks to forest carbon offset projects
Forest carbon projects are becoming increasingly vulnerable to climate-related disasters including large-scale fires, according to a new analysis from an offset ratings agency.
Climate fund selects nature-based, clean energy carbon projects for investment from 2024 group
A climate fund has chosen new nature-based carbon projects, and energy-focused emissions reductions activities, after assessing hundreds of applications among its 2024 cohort, following on from a durable carbon removals selection round earlier this year.
Ecuador inks €23.4 mln REDD deal with German development bank as nation warms to offsetting
Ecuador signed a €23.4 million ‘REDD Financial Contribution Contract’ with German development bank KfW on Monday as the country seeks to promote mitigation projects and boost voluntary carbon market (VCM) activity following years of disengagement.
Standard announces new voluntary carbon biochar methodology
A voluntary carbon standard has released its new methodology for crediting durable removals from biochar production and storage, which will now face a public consultation.
Saudi university teams up with materials firm to explore carbon removal solution
A materials science company and a research institution based in Saudi Arabia have announced a year-long research and development partnership focused on CO2 removal via concrete, aimed at generating voluntary carbon credits.
EU voluntary carbon startup raises €5 mln seed funding
A tree-planting startup has raised €5 million seed investment to expand its voluntary carbon project development pipeline across Europe.
US court orders Oregon investor to pay over $120 mln for fraud, Ponzi scheme involving carbon offsets
An Oregon-based investor and his associated firms have been ordered by a US judge to pay over $120 million in restitution and disgorgement for operating a Ponzi scheme and committing fraud related to digital asset investments and a carbon offset programme, a federal court ruled on Wednesday.
EMEA
Europe’s ETS-covered shipping emissions drop 13.7% in 2023
European shipping emissions covered by the bloc’s carbon market dropped 13.7% in 2023 compared to the previous year, in large part due to a reduced demand for energy and general goods from the EU, according to Carbon Pulse analysis of preliminary data published this week.
EU ETS could amass 1.7 bln surplus allowances by 2030 unless hydrogen production rises –analyst
The EU ETS could end its current phase in 2030 with a total surplus of 1.7 billion allowances, including 900 million permits in various reserves, but progress in reaching targets for green hydrogen could alter this outlook, according to a new study.
France to invest over €10 bln in offshore wind, despite far-right hostility
France will support the deployment of offshore wind power thanks to a €10.82 billion state aid scheme approved by the European Commission on Wednesday, despite opposition from the far-right which appears closer than ever to having a majority in Parliament following elections to be held on Sunday.
UK urged to speed up transition from oil and gas in the North Sea
As the UK faces declining oil and gas production in the North Sea, transitioning the region to offshore wind, green hydrogen, and carbon capture and storage (CCS) would provide energy security and valuable know-how, though the impact on workers and the environment needs to be carefully managed, experts say.
Austria sets out carbon management strategy for hard-to-abate emissions
The Austrian government is looking at the reforms needed to enable carbon capture and storage (CCS) in the country in an effort to tackle hard-to-abate emissions from sectors like steelmaking and cement.
Euro Markets: EUAs end little changed after intraday rally fails to find support from weaker gas
EU carbon prices ended Wednesday little changed after a fairly volatile session characterised by strong volume, as an EUA rally after the daily auction appeared to be a reaction to another increase in speculators’ net short positions and was not matched by a recovery in natural gas, casting further doubt on the recent correlation between the two markets.
ASIA PACIFIC
ANALYSIS: China ETS allocation plan likely to boost liquidity, add selling pressure among emitters
A carryover mechanism introduced in China’s draft permit allocation plan may help boost liquidity and reduce oversupply in the national carbon market, though the arrangement could result in great selling pressure among Chinese emitters.
Australian govt introduces Future Made, beefed up ARENA legislation to parliament
The federal government introduced its Future Made in Australia legislation to parliament Wednesday, designed in part to unlock some A$22.7 billion ($15.1 bln) in public funding over the next decade to drive investment into industries that will transition the country to net zero emissions and, the government hopes, turn it into a renewable energy superpower.
Korean power supplier secures government-backed Article 6 biofuel conversion project in Uzbekistan
A South Korean power company has secured a government-backed international carbon project in Uzbekistan, as part of Seoul’s efforts to obtain Paris-aligned carbon credits through expanding partnerships in Central Asia.
Japanese consortium to pilot urban DAC technology
A group of Japanese companies will pilot a technology that captures CO2 in urban spaces and uses it to grow vegetables and other plants that can be sold on the spot at places like railway stations in one of the country’s biggest cities.
Shanghai to auction off 1 mln carbon allowances under municipal ETS
The Shanghai government will auction off 1 million carbon allowances under its emissions trading scheme at the end of this month to ensure regulated emitters can acquire enough permits for compliance purposes.
AMERICAS
General Motors to retire nearly 50 mln GHG credits following federal investigation
US auto manufacturer General Motors (GM) will retire approximately 50 million credits under the Environmental Protection Agency’s (EPA) greenhouse gas (GHG) programme, after the agency identified excess CO2 emissions from approximately 5.9 million GM vehicles.
Washington’s current year volume once again picks up for Q3 auction
Washington’s third quarterly carbon allowance auction in September will feature the highest number of current vintage permits offered so far this year, according to a notice published by the state’s Department of Ecology (ECY) Wednesday.
Oregon releases draft CI model updates for state Clean Fuels Program
Oregon’s Department of Environmental Quality (DEQ) released Wednesday a series of draft updates to the state’s Greenhouse Gases, Regulated Emissions, and Energy Use in Technologies (OR-GREET) model used to assess carbon intensity (CI) for the Oregon Clean Fuels Program (OCFP), ahead of a workshop next week to discuss proposed programme changes.
WCI Markets: CCAs rise amid workshop anticipation, WCAs up on low volumes
California Carbon Allowance (CCA) prices moved higher as market participants positioned ahead of next week’s rulemaking workshop, while Washington Carbon Allowance (WCA) values were up, with volumes picking up momentarily in the otherwise muted market.
Alberta TIER credit prices slip below $50 in June after record retirements towards 2023 compliance
Alberta Technology Innovation and Emission Reduction (TIER) system credit prices dropped below $50 as transaction activity in June slid from all-time highs into the 2023 compliance deadline with record levels of retirements, according to a report published Tuesday.
INTERNATIONAL
FEATURE: Growth of interconnected electricity grids bolsters energy security
As power demand ramps up and generation becomes more dispersed and variable, electricity grid interconnectors will help to balance supply with demand levels and encourage countries to work together to secure energy supplies.
BIODIVERSITY (FREE TO READ)
Survey of Australian biodiversity offset sites finds 30% in worse condition than before
A study commissioned by the Australian government on its biodiversity offset sites has found that 30% of the areas surveyed were in worse condition than before the projects started, and found missing, incomplete, and incorrect information in many of the projects’ documentation.
New York state drafts plan to achieve 30×30 biodiversity target
The US state of New York has drafted a plan to advance efforts towards protecting 30% of its land and sea by 2030, saying an additional 1.2 million hectares must be conserved to achieve this target.
Environmental intelligence firm raises $10 mln to mainstream nature risk reporting
UK-headquartered nature platform provider Natcap announced Wednesday it has secured $10 million in a Series A funding round to scale its technology for supporting companies in assessing nature-related risks and opportunities.
Central bank group flags two nature litigation trends
Nature-related law cases focused on rights and corporate responsibility are set to increase in the next few years, the Network for Greening the Financial System (NGFS) said on Tuesday in a report.
Argentine developers to market first biodiversity credits at COP16
Two Argentine developers have partnered with a Switzerland-headquartered foundation to launch separate biodiversity credit projects in two South American forests over 11,000 hectares, with plans to market them at the upcoming COP16 summit, Carbon Pulse has learned.
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MARKETPLACE LAUNCH
Supercritical launches a world-first in carbon removal: a multi-pathway marketplace with live pricing and availability data for 80% of the biochar market. This launch brings radical transparency to a traditionally opaque market. Underpinned by a rigorous 118-point vetting process, the marketplace ensures quality across biochar and other removal pathways. Real-time data empowers buyers to make informed decisions and transact effectively. Trusted by 1/3 of all corporate buyers, including The Economist Group and Virgin Atlantic, Supercritical is redefining carbon removal procurement. For companies committed to climate action, Supercritical offers a single place to navigate the carbon removal market. FIND OUT MORE
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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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BITE-SIZED UPDATES FROM AROUND THE WORLD
EMEA
French progressives unite – France’s progressive parties are banding together in the face of a strengthening far-right Rassemblement National (RN), creating Le Nouveau Front Populaire (New Popular Front), they announced on Thursday. The group, consisting of the European Greens, the Party of European Socialists, the European Left, and the European Free Alliance, will stand for a greener, fairer, more socially just, and more democratic society, it said. The union comes ahead of the second round of French elections on Sunday, in which the RN could win an absolute majority in the French parliament. Policymakers and analysts worry that a new far-right French government could paralyse the EU on issues including climate and energy policies.
Grid congestion – ACER, the EU Agency for the Cooperation of Energy Regulators, has pointed to the urgent need for electricity transmission system operators (TSOs) to maximise capacity for cross-border trade. Its 2024 Market Monitoring Report on capacities for cross-zonal electricity trade finds that the EU power grid is increasingly congested. Remedial actions like redispatching rose by 14.5% in 2023 and the cost of managing this congestion was €4 bln. Electricity TSOs have a legal obligation to make 70% of transmission capacity available for cross-border trading by the end of 2025, but some TSOs in highly meshed areas reached, on average, just 30-50% last year, ACER reports. Back in April it warned that reaching the minimum 70% requirement “is a prerequisite for the energy transition”.
Onshore wind – The German Federal Network Agency (BNetzA) has today published the awards of tenders for onshore wind turbines and innovation from May 1. “With almost 2.5GW of bids [for onshore wind] submitted, the current tendering round represents a record and confirms the trend of rising bid and approval figures,” said BNetzA President Klaus Müller. “If this positive development continues, the expansion targets for onshore wind can be achieved.” With a tendered volume of 2,795 megawatts (MW), 197 bids with a bid volume of 2,485 MW were submitted. Similar volumes have not been seen since the bidding rounds in 2017. In total, 189 bids with an award volume of 2,379 MW were successful. In terms of bid value, the average volume-weighted award value of 7.33 cents/kWh is only just below the maximum value of 7.35 cents/kWh.
The Italian Job – Ten former operators of the largest Italian steel plan are being investigated for manipulating CO2 emission data, when the company was under ArcelorMittal’s majority ownership. The investigation by the Italian government has revealed that there are inconsistencies with the reported data for 2022 and for the assignment of CO2 quotas for 2023. According to the Italian authorities, Acciaierie d’Italia have declared to the EU ETS register an inferior number of CO2 emissions that they actually released. This in turn has led to higher profit for the steel plant. At the same time, Acciaierie d’Italia also received a higher amount of free allowances than they should have. (ilsole24ore)
ASIA PACIFIC
Early election – Independent MP has written to Australian PM Anthony Albanese asking him to consider holding an early election, arguing that the county’s energy transition was being jeopardised by the opposition’s nuclear energy proposal, which needed to be resolved. Ryan posted a copy of the letter on social media platform X, stating that Coalition’s thinly-detailed plan had “jammed a stick into the spokes of the Australian economy”. She referred to recent analysis which found the Coalition’s nuclear idea and its failure to articulate a 2030 emissions reduction target was eroding investor confidence in the country. If the government does serve its full term, voters will go to the polls by May, next year.
Open for business – Indonesia has opened the country’s first battery cell production plant for EVs, operated by South Korea’s Hyundai Motor Group and LG Energy Solutions, Reuters reported. The plant has an annual capacity of 10 GW hours of battery cells and is part of Hyundai and LG’s plan to invest up to $9.8 bln in Indonesia to develop an EV supply chain, thanks to the country’s rich deposits of nickel and copper. The plant is integrated with Hyundai’s auto factory where the company is set to start producing 50,000 units per year of the Kona electric SUV, made using Indonesian batteries.
Priority projects – The New South Wales government has declared six renewable energy projects as Critical State Significant Infrastructure (CSS). Three of the projects are transmission projects, while the other three are pumped hydro projects. A CSSI declaration means a project is deemed to be essential to the government for economic, social, and environmental reasons. The government noted a comprehensive all-of-government assessment will still need to be undertaken by the projects before they’re approved. It follows the government reaching a deal with Origin Energy to extend the life of the Eraring coal-fired power station by two years due to energy security fears, as the deployment of renewable energy has not been as fast as previously predicted.
Be mindful – China’s Certification and Accreditation Administration (CNCA) has asked domestic organisations to examine their ‘direct carbon-relevant certifications’, as the government aims to strengthen the governance of such activities, according to a notice released this week. Direct carbon-relevant certifications refer to product or service certifications on carbon reduction/removal, carbon disclosure, and carbon neutrality. Certification bodies with existing certification rules that do not fall within the scope of the notice should cancel or revoke the issued certificates, CNCA said.
AMERICAS
Brazil’s Amazon burns – The Brazilian Amazon recorded 13,489 wildfires in the first half of the year, the worst figure in 20 years, satellite data revealed Monday. The total was up more than 61% compared to the same period last year – an increase experts say is the result of a historic drought that struck the world’s largest tropical rainforest last year. Since Brazil’s National Institute for Space Research began compiling records in 1998, only two other years experienced more wildfires from January through June: 2003 (17,143) and 2004 (17,340). The data makes for difficult news for the government of President Luiz Inacio Lula da Silva, with the number of fires increasing even as deforestation in the Amazon is on the wane. (France 24)
Maybe next time – Louisiana Governor Jeff Landry (R) has vetoed a bill that would have allocated revenues from CO2 sequestration to local governments, the Post South reported. HB 934, sponsored by Rep. Jeremy LaCombe (R), looked to allocate 30% of the revenue received by the state for CO2 sequestration on property within the jurisdiction of the Department of Wildlife and Fisheries and the Wildlife and Fisheries Commission to local parishes. While Landry said he is committed to working on future legislation that would remit a portion of revenues to local governments, he said he cannot change constitutionally dedicated funds through a statute.
VOLUNTARY
Brazilian coffee biochar – French greentech start-up NetZero is opening its second biochar factory in Brazil, it announced last month. It operates a third biochar factory in Cameroon. The new factory is expected to produce 4,000 tonnes of biochar per year from crop residues supplied by nearly 250 coffee growers, helping to improve their yields and remove 6,000 tCO2e per year, NetZero said. Both of its Brazilian factories are near a regional cooperative of more than 10,000 coffee growers. The company aims to add 10 more biochar sites in Brazil in 2025, with construction set to start on its third site in a different Brazilian state in a few weeks. NetZero’s carbon removal projects are certified under the Puro Standard. It aims to remove more than 5 Mt of CO2 by 2030.
Thermal revisions – Verra has released a revision to the CDM methodology for thermal applications with changes including standardising the fraction of non-renewable biomass (fNRB). The Verified Carbon Standard (VCS) Methodology Revision VMR0011 Switch from Non-Renewable Biomass for Thermal Applications by the User, v1.0 include the following changes: standardizing key parameters, like the fNRB and adjusting for any leakage of non-renewable woody biomass, strengthening the methodology’s integrity by introducing a discount factor to account for uncertainty if fNRB is determined using CDM TOOL30, and establishing the leakage adjustment factor at validation. This represents a revision to the Clean Development Mechanism (CDM) methodology AMS-I.E.: Switch from non-renewable biomass for thermal applications by the user. As of July 2, 2024, AMS-I.E. is excluded from use in the VCS Program as a standalone methodology, and VCS Program projects using AMS-I.E. must use VMR0011 in conjunction with the CDM methodology instead. A new VCS Program methodology, Methodology for Improved Thermal Energy Generation Units (ID #M0174), is currently under development and when released, this new methodology will replace VCS Methodology Revision VMR0006 Energy Efficiency and Fuel Switch Measures in Thermal Applications and VMR0011. Projects using VMR0011 may update to the new methodology once published.
Mine methane moves – US mining firm American Resources Corporation announced Tuesday that it has reached an agreement with a third party to capture and process both coal bed methane and coal mine methane from its Mine #15 underground mine in Pike County, Kentucky. The company said its American Carbon division is in the process of being spun off from its parent company to focus on the restart of several metallurgical carbon mining operations, as well as working with industry partners to restart other carbon assets, including its series of Carnegie mines at McCoy Elkhorn in the Bluegrass State.
INVESTMENT
Investment spree – Spanish firm Seaya has closed its latest climate tech fund at €300 mln, bringing its total assets under management to €650 mln. The fund, Seaya Andromeda, was launched in 2022, and invests in companies that are either reducing waste or GHG emissions. The firm has already made its first five investments from the fund into a range of impact technology companies, including Recycleye, an AI-driven robot which sorts recyclable waste, and 011h, an environmentally friendly construction firm, which reduces building-site CO2 emissions by 75%. The fund plans to make 25 investments in total by the end of 2027, including around five more deals this year. Seaya, which was set up in 2013 by former private equity investor Beatriz Gonzalez, has closed five funds. Three are focused on sector-agnostic early-stage investments, one is the climate tech-focused Andromeda fund and the other is a Latin America-focused fund.
SCIENCE & TECH
Where do you live? – A study conducted by the Barcelona Institute for Global Health (ISGlobal) and published in The Lancet Planetary Health analysed 919 European cities to identify which urban configurations are most favourable for human health, environmental quality, and carbon footprint. The study categorised cities into four types: compact-high density, open lowrise-medium density, open lowrise-low density, and green-low density. The findings reveal that green-low density cities, characterised by lower population densities and more green spaces, have lower mortality rates, less air pollution, and reduced urban heat island effects, but they also exhibit higher per capita carbon footprints due to less energy-efficient sprawl. Conversely, compact-high density cities, which include major cities like Barcelona, Milan, Paris, and Basel, are more efficient in terms of lower CO2 emissions per capita, but suffer from higher mortality rates, poorer air quality, and stronger urban heat island effects due to their high density and lack of green spaces. The study suggests that while compact cities are often seen as a model for the future due to their energy efficiency and lower GHG emissions, they currently face significant environmental challenges that need to be addressed. These include high levels of air pollution and a lack of green spaces, which could be mitigated through innovative urban planning solutions like superblocks and increased green infrastructure. Each city type presents unique advantages and challenges, indicating that tailored solutions are necessary to optimize health, environmental quality, and carbon management.
AND FINALLY…
Field trip – British power company Drax has launched a £30,000 schools transport fund to help schools organise visits to its sites around the UK as part of their science, technology, engineering, and maths (STEM) studies, it announced this week. The schools transport fund will support the Drax Foundation’s work to help young people develop their STEM skills. Drax has given £20,000 for educational STEM visits to its power station in North Yorkshire, where it is building a large bioenergy with carbon capture and storage facility, and another £10,000 for its Cruachan and Tongland hydro stations in Scotland. The schools will have to meet certain criteria to qualify for the visits, including being within 15 miles away from a Drax power station and having at least one-fifth of their students receiving free school meals. If they do, they can apply for transport grants of up to £500 online.
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