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TOP STORY

Labour win set to advance UK’s climate standing on world stage

The UK looks set to slide up the climate action charts following the landslide win for the left-leaning Labour Party in the general election, with manifesto pledges including increases to renewable energy and halting new fossil fuel developments.

INTERNATIONAL

INTERVIEW: Montreal Protocol negotiators seek private sector help to destroy ozone-depleting substances

Private companies are needed to help destroy ozone-depleting substances (ODS) but should align closely with multilateral governance bodies, a Finnish negotiator under the Montreal Protocol told Carbon Pulse, noting that Finland does not have an official position on the voluntary carbon market (VCM) specifically, as countries prepare to meet next week.

UN explores repurposing CDM-based online offset platform for Paris era

The UNFCCC is considering repurposing its voluntary offset platform, which is supplied by Kyoto-era credits, in order to support the new carbon credit generation mechanism under the Paris Agreement.

International prop trading firm sees European, Asian carbon desks emptied

An international proprietary trading firm has seen its European and Asian carbon desks emptied, Carbon Pulse has learned.

EMEA

EU trade office seeks Green Deal tweaks to avoid ‘alienating partners’

The European Commission’s trade directorate is currently looking at adjustments to the EU’s CO2 border tax and anti-deforestation laws in order to avoid alienating foreign countries whose cooperation is needed to enforce the legislation, a senior EU official has said.

INTERVIEW: Tactics to avoid EU CBAM likely to include relocation, circumvention

Relocation outside of the bloc and circumvention of the taxonomy are two responses likely to be taken by companies when the true financial impact of the EU’s Carbon Border Adjustment Mechanism (CBAM) starts to kick in later this decade, in addition to securing supplies of low-carbon materials, according to an expert at a global consultancy.

EU’s upcoming definition of ‘waste heat’ reopens ETS controversy

An upcoming European Commission guidance document designed to help the 27 EU member states interpret the legal definition of ‘waste heat’ is likely to create some conflict when released later this month, as the waste incineration sector recently entered the EU’s Emissions Trading Scheme (EU ETS).

Heating decarbonisation plan vital to prevent sky-high CO2 prices, group says

The European Commission must develop a heating and cooling plan in order to meet its 2030 decarbonisation goals and prepare for the introduction of a dedicated Emissions Trading Scheme (ETS) for heating and transport, a coalition said this week.

Transport, international cooperation key for CCS in Europe, experts say

The deployment at scale of carbon capture and storage (CCS) across Europe will require stronger cross-border connections, with CO2 transport pipelines and regulated markets seen as the next big challenge by industry experts.

Liberia establishes group to push forward carbon markets regulation, mulls moratorium -media

Liberia has set up an expert group to help the African country move forward on carbon markets legislation, following a government meeting this week, local media reported, with a moratorium on market activity in discussion until a framework has been put in place.

Euro Markets: EUAs remain rangebound but post first weekly gain since late May as activity dwindles

European carbon prices traded in an almost-identical range as Thursday’s market as the summer holiday season swung into its peak period, with technical support and resistance levels compressing slightly as the market’s volatility has calmed, while UK Allowances fell away after a landslide election result ushered in a centre-left government that is expected to speed up action on climate issues.

AMERICAS

Biden administration targetting December for draft US EPA rules on existing natural gas facilities

US President Joe Biden’s administration is targeting the end of the year for the issuance of highly anticipated draft emissions standards for existing natural gas-fired power plants, according to a biannual regulatory agenda published late Friday that also provided expected timelines on a litany of other planned environmental regulations.

Few stakeholders back California ARB’s proposed changes to utility and industrial allocation, warn of rate increases

Stakeholders pushed back on the California regulator’s proposals to trim utility and industrial allocation, force consignment of free allowances, and place limits on permit revenue usage, which would raise utility costs for consumers, in feedback submitted in response to ARB’s cap-and-trade May workshop.

Canadian CDR firm, academics to soon initiate new ocean alkalinity enhancement field trial

A Canada-based CO2 removal (CDR) company and researchers from a Nova Scotian university are set to initiate a field experiment this month in Halifax Harbour to test ocean alkalinity enhancement (OAE) as a means of marine CDR.

US Forest Service defends timber targets in lawsuit for ignoring carbon emissions from logging

The US Forest Service, responsible for stewardship of public forest acreage, defended its timber targets as part of its process to secure funding from Congress, and thus not subject to federal environmental law, in recent updates to a lawsuit filed by environmental groups against the agency.

ASIA PACIFIC

CN Markets: CEAs lose steam amid liquidity drain, allocation plan release seen likely to boost trading activity

China’s national carbon market saw its price continue to fall over the past week with shrinking liquidity, though observers expect a resurgence in trading activity in the coming months after the government finally released a draft allocation plan for 2023 and 2024 this week.

Papua New Guinea to introduce 7% fee on carbon credit sales

Papua New Guinea will introduce a 7% fee on the proceeds of carbon credit sales this month, the government has announced, in order to raise desperately needed cash from mitigation and adaptation activities.

Chinese steelmakers could cut CBAM costs by 70% with prompt climate actions, report says

Chinese steelmakers could reduce the costs they have to pay under the EU’s Carbon Border Adjustment Mechanism (CBAM) by more than 70% if they implement timely emissions reduction measures, a report has found.

Vietnam mulls tax exemption on income from carbon credits, green bonds -media

The Vietnamese government has proposed tax exemptions on revenue earned through carbon credits and green bond interest in an effort to bolster the development of its domestic carbon market, local media reported Friday.

VOLUNTARY

INTERVIEW: New wave of forest conservation credits can move past scandals and set tone for high integrity

Credits in forest conservation can become “trailblazers” for high integrity, despite being the focus of multiple scandals over the past few years, an expert in nature-based solutions has told Carbon Pulse.

SBTi technical group called for external review following controversial carbon offset announcement

Pressure had mounted on Luiz Amaral, the former chief executive of the Science Based Targets initiative (SBTi), from the organisation’s own technical group before he decided to step down from his role for personal reasons this week, an internal letter seen by Bloomberg has revealed.

INTERVIEW: We want to have a real impact on the climate, says founder of first carbon credit-backed currency

The founder of a startup claiming to be the first digital currency backed by carbon credits believes their firm’s solution can set the tone for large-scale growth of the innovative climate finance tool.

Freshwater wetland CO2 sinks need a place in blue carbon methodologies -consultant

Freshwater wetlands must be included in voluntary carbon market (VCM) methodologies to protect at-risk areas and leverage their outsized carbon sequestration potential, according to a Chilean environmental consultant speaking to Carbon Pulse on the sidelines of the Latin America Climate Summit in Cartagena last week.

Plan Vivo updates standard, opens for consultation prior to ICVCM submission

Plan Vivo has updated its carbon credit standard and opened it for public consultation ahead of submitting its application to the Integrity Council for the Voluntary Carbon Market (ICVCM) to comply with the Core Carbon Principles (CCP).

BIODIVERSITY (FREE TO READ)

UK’s Labour must swerve nutrient credit “cliff edge” after election, expert says

The UK Labour party, following its election victory, must take steps to allow the private sector to engage with the nutrient neutrality scheme, said an expert whose company has had to halt around 15 such schemes due to uncertainty.

Over 720,000 ha of forest cleared for mining in Indonesia since 2001, study says

An estimated 721,000 hectares of forest in Indonesia have been cleared for mining between 2001 and 2023, including 150,000 ha of primary forest, an analysis has found.

COMMENT

Closing the CBAM scrap loophole – A critical move for climate & competitiveness 

The EU’s Carbon Border Adjustment Mechanism (CBAM) currently fails to equally apply carbon costs to imported aluminium products, allowing re-melted aluminium to bypass these costs and undermining the competitiveness of European aluminium recyclers, but there is still time for the bloc’s decision-makers to close this loophole.

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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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• Head of Carbon Project Development (m/f/d) – Volkswagen ClimatePartner GmbH – Munich
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BITE-SIZED UPDATES FROM AROUND THE WORLD

EMEA

2025 budget – Germany’s coalition has agreed a 2025 budget with “record investments” in renewable power, industrial decarbonisation, electric mobility, and greener heating, chancellor Olaf Scholz and his cabinet colleagues have said. Brokering next year’s budget had been made more difficult by the constitutional limit on new borrowing, which had ruined funding plans made by Scholz’s government after a seminal ruling last year. However, ministers have said the new budget avoids painful cuts while putting Germany on track with GHG neutrality and economic growth. Observers however have voiced doubts about whether such an interpretation reflects the deal’s true impact. The package is designed to use decarbonisation as a lever for industrial recovery and includes tax write-offs for decarbonisation investments for companies and reduced bureaucracy. (Clean Energy Wire)

Clean cooking – Italian energy multinational Eni, through its subsidiary, has launched a clean cooking programme in Angola, aiming to support families living in rural and peri-urban areas of seven provinces within the country by providing access to energy efficient, reliable, and sustainable cooking solutions, the firm announced in a release. About 90% of the improved cookstoves distributed in Angola will be produced locally, contributing to the development of entrepreneurship, technical skills, and creating job opportunities. The project, which is part of Eni’s broader Clean Cooking Program currently ongoing in Congo, Côte d’Ivoire, Mozambique, and Rwanda, involves 50,000 people at the moment and targets to reach more than 2 million people by 2030.

Power-sharing – South Africa’s energy transition will likely speed up after voters forced the ruling African National Congress (ANC) into a power-sharing arrangement for the first time with pro-business opposition Democratic Alliance (DA). In a significant change, President Cyril Ramaphosa took away pro-coal minister Gwede Mantashe’s control of the energy sector, leaving Mantashe only keeping control of mining and hydrocarbons, while the ANC’s Kgosientsho Ramokgopa, previously the electricity minister, will now be in charge of setting energy policy with a wider mandate. There is now a greater chance that Mantashe’s highly contentious Integrated Resource Plan – which envisages a slowdown in renewable energy investments and a switch to gas-fired power – will be revised, said an energy expert. Meanwhile, DA’s Dion George is the new environment minister, who played an active role in several COP climate talks. South Africa’s Just Energy Transition Plan (JETP) needs to accelerate for the country to achieve its climate goals, Kevin Mileham, the DA’s shadow minister of mineral resources and energy, told Climate Home.

Biofuels trouble – Shell will take a hit of up to $1 bln on a stalled project in Rotterdam that was intended to convert waste into jet fuel and biodiesel, following a difficult market for biofuels. The move is expected to cost anywhere from $600 mln to $1 bln. Originally given the green light in 2021, the plant was already behind schedule due to technical difficulties, and after pausing construction, Shell is now reviewing the economics of the project, as prices for biofuels in Europe come under pressure from oversupply, cheap imports from China, and lower demand. Shell said it would give a final impairment figure for the project after running a review, at its second-quarter results on August 1. The oil major has also recently scaled back biofuels production plans in the US and Germany. (FT)

ASIA PACIFIC

Scrap it – A campaign in New Zealand to stop the government handing out free allocation permits to emitters under the country’s Emissions Trading Scheme has taken a petition to parliament after garnering 6,000 signatures, Radio NZ reported. Companies included Rio Tinto, Methanex, and Bluescope, which owns the Glenbrook Steel Mill get handed free allocation as a way to ensure industry stays onshore. However, the Don’t Subsidise Pollution campaign wants free credits stopped, and companies helped to cut their emissions instead. The previous Labour government committed cash to cut emissions under the Government Investing in Decarbonising Industry scheme, however that was phased out by the incoming coalition government.

Norway’s reach – Norway is keen to explore investments in renewable energy such as hydropower and carbon capture and storage in Indonesia, Norway’s Energy Minister Terje Aasland told Reuters on Thursday after meeting his counterpart Arifin Tasrif in Jakarta earlier this week. Norwegian companies can contribute their experience in these technology to reduce emissions in the Southeast Asian nation, Aasland said. The European country aims to reach net zero GHG emissions by 2050, even while continuing to explore for new oil and gas in the Arctic’s Barents Sea with output expected to peak in 2025, and having become Europe’s largest supplier of natural gas. Aasland met company representatives from Norwegian firms in Singapore on Thursday including Equinor, DNB, and Yarra, which are investing in renewables, energy storage, and alternative fuels in the region.

Forestry project – ByWill, which aims to promote carbon neutrality in all 47 prefectures in Japan, has signed contracts with the government of Okayama prefecture’s Kagamino town and the Sakushu Kagami Forestry Association to generate domestically issued J-Credits from forestry projects, it announced Friday. The total project area is around 1,340 hectares, and the amount of CO2 absorbed is estimated at 55,000 t-CO2 over eight years, the project operator said. ByWill recently also formed another partnership with TBM, which develops environmentally friendly materials, to promote the circular economy.

Being a sport – Khanh Hoa solar plant, the second-largest renewable energy project in Vietnam, has been selected as the sole provider of carbon credits from Vietnam for the Paris Olympics 2024, Vietnamnet Global reported. The solar power plant has a total installed capacity of 50MW and generates 76,842 MWh of electricity annually, replacing approximately 65,254 tonnes of CO2e annually. The credits will be used to meet Paris Olympics 2024’s goal of reducing emissions related to the event and to support carbon reduction projects. Additionally, the Olympics organising committee is sponsoring nine projects to implement carbon reduction and offsetting activities for the Olympics. These initiatives include installing tens of thousands of cooking systems and providing easier access to water in Nigeria, Congo, Kenya, and Rwanda, protecting forests in Guatemala and Kenya, and restoring mangroves in Senegal.

GREEN financing – Abu Dhabi National Oil Company (ADNOC) has signed a $3 bln green financing facility with Japan Bank for International Cooperation (JBIC). The finance facility is part of JBIC’s Global action for Reconciling Economic growth and Environmental preservation (GREEN) lending programme and is in part supported by Japanese commercial banks, according to Gas World. The lending facility will support ADNOC’s decarbonisation and clean energy initiatives, as the oil company intends to reduce its carbon intensity by 25% by 2030 and has pledged to reach net zero by 2045.

AMERICAS

SCOTUS action looms – The US Supreme Court is taking aim at EPA’s ability to stop pollution and curb climate change – even in cases that don’t directly involve the agency. In one of the biggest cases this term, the justices struck down the Chevron doctrine. The high court also reached out through its emergency docket to halt EPA controls on smog-forming pollution that wafts across state lines. There’s more in store for the agency and environmental regulators next term, reported Greenwire. The Supreme Court has already added two significant environmental cases to its calendar, and conservative justices are signaling interest in revisiting the long-dormant nondelegation doctrine, which says Congress can’t hand off too much power to executive agencies. Climate change could be a major focus for the justices next term, if they choose to add cases such as Alabama v. California, Sunoco v. Honolulu, Diamond Alternative Energy v. EPA, or Nuclear Regulatory Commission v. Texas to their calendar. (E&E News)

Backing up – The Government of Alberta this week announced $15 mln over 5 years to test new technologies to slash methane emissions via the Natural Gas Innovation Fund Accelerator’s Emissions Testing Centre (ETC) programme. Established in 2021, the ETC programme offers free, simulated testing spaces for innovation at the University of Calgary, as well as a live testing space at Tourmaline and Perpetual Energy’s West Wolf Lake gas processing plant near Edson, where companies can validate their technologies that measure, monitor, or reduce methane emissions. More than 70 firms have already utilised the ETC to test their projects. However,  the facility lacked long-term funding, so the provincial government has stepped in for support. The new funding will ensure the programme continues to help companies de-risk and commercialise their solutions.

VOLUNTARY

Brazilian VCM crackdown update – The suspects at the heart of Operation Greenwashing – a probe by the Brazilian Federal Police (PF) reportedly targetting one of the country’s top carbon credit sellers – were operating in the Iquiri National Forest, a federal conservation unit managed by the Chico Mendes Institute for Biodiversity Conservation (ICMBio), reported Amazonia Real. Additionally, the outlet reported that there are five ongoing civil investigations that are investigating carbon credit issues on indigenous and traditional territories. A sixth civil investigation is following the issue of NFTs, relating to issues around the financialisaton of nature. According to investigators, there were more than 1 million cubic metres of wood on the alleged illegally appropriated territories, whose market value was also calculated by expert assessment at R$600 mln.

AND FINALLY…

Here I am at Camp Carbon Capture – A group of middle and high school students in Baton Rouge, Louisiana, participated recently in a STEM camp focused on CCS processes and safety, reported WGMB Baton Rouge. During the camp, students learned about the process of capturing CO2 and transporting it to specially designated storage sites. They also experimented with hands-on projects, such as building a model of an underground reservoir that has porous and impermeable rock layers using household items, including Play-Doh, pasta, and beans, and using water and vegetable oil to demonstrate how CO2 can be injected and stored in the reservoirs. The camp was hosted by Southern University and was made possible by ExxonMobil, the local outlet reported.

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