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TOP STORY
Stakeholders press California regulator ARB on 2025 budget cut options for cap-and-trade
Stakeholders questioned the possibility of earlier cuts to cap-and-trade allowance budgets prior to finalising rules, as ARB staff discussed the “complicated” status of 2025 allocations with implementation of ETS changes delayed to 2026, during the agency’s pre-rulemaking workshop on Wednesday.
VOLUNTARY
SBTi set to pilot test new net zero standard for financial institutions
The Science Based Targets initiative (SBTi) is inviting financial institutions to apply to take part in its pilot standard for net zero targets in the sector, it announced on Wednesday.
Amazon becomes latest tech giant to underscore carbon removal focus
Amazon has become the latest big tech firm to underline a focus on carbon removals to meet future net zero targets, in an annual sustainability report published Wednesday.
Vietnam advances to validation stage under ART TREES carbon standard
Vietnam has successfully submitted complete and programme-eligible REDD+ documentation to ART TREES, the standard’s secretariat announced Wednesday, paving the way for validation, verification, and eventual issuance of serialised jurisdictional carbon credits from the Southeast Asian country.
Certifier validates new carbon capture methodology
A certifier has validated a new methodology for carbon capture and utilisation, developed by a British cleantech startup focused on hard-to-abate sectors.
Durable carbon removals credits from UK supplier to be sold on Xpansiv exchange
A UK-based durable carbon removals company will use Xpansiv’s exchange platform to sell credits to corporate and intermediary participants around the world, underpinned by a standards-setter and carbon insurance specialist, they announced on Wednesday.
Voluntary carbon removals standard announces new biomass protocol
A voluntary carbon standard has announced a new subsurface biomass protocol for durable removals, which will now face a public consultation before credits are issued.
Blockchain carbon trading firm to acquire marketplace specialising in large-scale CDR projects
A carbon trading tech startup will acquire another firm specialising in large-scale carbon dioxide removal (CDR) projects, the two companies have announced.
Puro to revise enhanced rock weathering carbon methodology
Puro.earth, a registry and certification standard for durable carbon removal, will revise its enhanced rock weathering methodology taking into account initial projects’ feedback, it said Wednesday.
ACR resumes Canadian ODS project activity after affirming additionality
Carbon registry ACR said Monday that it has resumed project activities related to its Canadian ozone-depleting substances (ODS) methodology after its investigation found the framework remains additional in light of a recent federal offset protocol and other regulations.
Puerto Rican coffee farmers receive payments from USDA, aim for CO2 credits
Coffee farmers in Puerto Rico have received inaugural incentive payments from a mitigation programme funded by the US Department of Agriculture (USDA), with the eventual aim of producing certified carbon credits for the voluntary carbon market (VCM).
Dutch research centre to purchase carbon credits from biodiversity-focused rewilding project in the UK
A Dutch research centre has partnered with a UK-based carbon removal company and a rewilding project developer to offset employees’ travel emissions, in what companies define as a ‘first-of-a-kind’ purchase of carbon credits from a biodiversity-focused project.
ASIA PACIFIC
Malaysia in talks with neighbours to establish CCUS trading agreements
Malaysia is discussing bilateral agreements with countries in the region to establish itself as a carbon capture, utilisation, and storage (CCUS) hub, while creating rules, regulations, and incentives to attract project developers, an official told a conference Wednesday.
Australia CCS will struggle to scale without bipartisan political support, conference hears
Australia’s carbon capture and storage (CCS) industry will struggle to scale and be part of achieving the country’s climate goals without further political support, an expert told a conference Wednesday.
ETS, nature-based solutions key pillars in new NZ climate strategy
The New Zealand government on Wednesday announced the main pillars of a new climate strategy that will rely on the emissions trading scheme and nature-based solutions as two of five major focus areas.
Southeast Asia set for massive offshore natural gas investments -analysts
Offshore gas investments in Southeast Asia are set to more than double over the next four years, according to research released Wednesday, with a myriad of fossil fuel projects in the region ready to be executed.
China could cut steel sector CO2 emissions by 200 mln tonnes by 2025 from peak levels, report says
China’s steel industry has the potential to lower its CO2 emissions by as much as the entire annual EU steel sector emissions from the 2020 peak by reducing steel output and raising the share of low-carbon production in the next two years, a report has found.
EMEA
German government will not accelerate its coal phaseout date -media
The German government will not introduce a law to bring forward the country’s coal exit date from 2038 to 2030, the country’s economic minister, Robert Habeck, said on Tuesday, according to national media.
Green steel can help cut emissions from cars, without adding costs -study
The use of low-carbon steel would help to reduce CO2 emissions in European car production by 6.9 million tonnes in 2030, adding little extra cost to the price of electric vehicles, according to research published on Wednesday.
European VC investment up 12% so far this year, energy sector dominates
Startups tackling energy transition and climate themes attracted almost 20% of the $29.3 billion in venture capital investment raised so far this year in Europe, up 12% year-on-year.
Egypt’s voluntary carbon market set to open pending regulatory approval of new rules
Egypt’s voluntary carbon market (VCM), two years in the making, is poised to open once the country’s Financial Regulatory Authority (FRA) approves trading rules by the Egyptian Stock Exchange (EGX) and settlement rules by clearing house Taswyaat, both put out this week.
Mozambican woodlands store around double the carbon previously thought, says study
The miombo woodlands in Mozambique store around twice as much carbon as predicted with conventional methods, researchers led by carbon data provider Sylvera have found using laser-based remote sensing.
Euro Markets: EUAs drop for third day as COT data shows small drop in speculators’ bearish bets
EU carbon prices fell for a third straight session on Wednesday as the energy complex gave up early gains and after weekly position data showed investment funds had shifted their holdings in favour of greater length during last week’s 4.3% price rally, while UK Allowances extended their losses amid renewed speculative selling in the wake of last Thursday’s election.
AMERICAS
ARB’s California offset issuance almost catches up with 2023 levels YTD
California regulator the ARB sped up its issuance of compliance-eligible offsets, narrowing the year-on-year gap of issuance thus far in 2024, agency data released Wednesday showed.
North Dakota commission urges Minnesota to recognise CCUS under its ‘problematic’ carbon free power standard
The North Dakota Industrial Commission (NDIC) is pressing for the inclusion of carbon capture, utilisation, and storage (CCUS) under Minnesota’s carbon-free electricity requirements, which passed in spite of neighbour North Dakota’s reservations last year.
US researchers unveil ultrafast, chemical-free CCS breakthrough they say can revolutionise industry
US-based researchers have unveiled a groundbreaking method for the ultrafast and chemical-free conversion of atmospheric CO2 into stable, ice-like hydrates – a breakthrough they say could revolutionise the carbon sequestration industry.
Fossil fuel producer partners with Canada Growth Fund to launch CCS projects in country’s oil sands
An oil and gas producer has entered into a strategic partnership valued at up to C$2 billion ($1.47 bln) with the Canada Growth Fund (CGF) to develop carbon capture and sequestration (CCS) infrastructure across its steam-assisted gravity drainage (SAGD) oil sands facilities in Saskatchewan and Alberta.
BIODIVERSITY (FREE TO READ)
Australia puts 8 mln hectares of land, sea under Indigenous protection
Australia on Wednesday announced it will establish 12 new Indigenous Protected Areas (IPAs), spanning 7.5 million hectares of land and 450,000 ha of sea.
Ireland targets developing farmland nature credits
The Republic of Ireland has allocated €22.3 million to advance research on sustainable agriculture, including exploring opportunities for farmland nature credits.
Data firm launches tool to drive conservation efforts in US
A US-based data intelligence company has launched a new platform to support decision-making on biodiversity conservation efforts across the country’s Western states.
EU-funded project launches to scale private investment in biodiversity
The EU Commission has ringfenced €4.7 million to fund a project aimed at mobilising private investment in biodiversity conservation and restoration measures.
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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
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BITE-SIZED UPDATES FROM AROUND THE WORLD
INTERNATIONAL
Heavy impact – As a significant contributor to air pollution, tackling emissions from trucks is vital if governments are to keep to the Paris Agreement, says a new report that urges governments to set clear phase out dates for petrol and diesel engines – 2030 for polluting buses and 2040 for trucks. The report by global non-profit Climate Group and the Under2 Coalition’s ZEV Community pointed out that trucks account for just 4% of all vehicles on the road globally but as much as 40% of all road transport emissions and a third of total transport fuel use. In addition to clear phase out dates for trucks, governments should also implement other legally binding policies like the ambitious CO2 Standards for Trucks Regulation in the EU and Advanced Clean Trucks legislation in California, said the report. Business engagement is also key, it said, through initiatives like the Climate Group’s EV100+ zero emission trucking initiative, in order to unlock private finance and send a clear demand signal to manufacturers, it said.
EMEA
H2 subsidies – Spain’s government has approved subsidies worth almost €800 mln for major green hydrogen projects, to be directed towards seven projects deemed to be of regional value by the European Commission and with an overall electrolysis capacity of 652 MW. The country is vying to be a leader in the technology, taking advantage of its bountiful sunshine and wind to produce clean energy. The projects will spur investments worth over €6 bln in their lifespan and will be sited close to consumers. They include projects in Spain’s hydrogen valleys that are large industrial hubs integrating green hydrogen and its use, such as in producing fertilisers or powering refineries. Some 40% of the funds will go to two projects managed by oil company Repsol, each with an electrolysis capacity of 100 MW, while almost a third, or €242 mln, will go to Spanish utility Iberdrola’s projects in Puertollano in south-central Spain to develop 220 MW of electrolysis capacity. Spain aims to have 11 GW of electrolysers in place by 2030. (Reuters)
UNEP support – Tanzania has called on the United Nations Environment Programme (UNEP) to support it on the clean cooking energy agenda, helping promote the transition away from the use of firewood and charcoal and onto more efficient cook stoves. Christina Mndeme, the Deputy Permanent Secretary in the Vice President’s Office (Environment) made the appeal during the 11th Annual Subcommittee meeting of the Committee of Permanent Representatives of UNEP started on Tuesday yesterday in Nairobi, Kenya. While she also called on UNEP to support the country in the realms of carbon trading and the blue economy. The five-day meeting aims to review UNEP programmes for the period 2022-2023 and to discuss the work plan and budget for 2023-2024. Earlier this year, governments, international organisations, and private sector donors pledged $2.2 bln in new finance to provide universal clean cooking access across Africa by 2030.
Air to road – The UK’s Royal Mail is halving the number of domestic flights it takes and choosing to transport more mail by road instead. The switch is intended to improve reliability as vehicles are less likely to be delayed by bad weather and are less capacity-constrained, and is projected to save around 30,000 tonnes of CO2 per year. A total of 18 domestic flights are being discontinued, helping Royal Mail towards reaching its net zero target by 2040. The only domestic flights remaining will be those key to meet the next day delivery service obligation, it said. Royal Mail runs its fleet of heavy goods vehicles (HGVs) partly on hydrotreated vegetable oil and also operates one of the country’s largest EV fleets. (Fleet News)
UK government names – The new Labour government is expected to name Scottish MP Michael Shanks in the junior role of energy minister, and has appointed Chris Stark, former chief of the Climate Change Committee, to head up the government’s new clean power ‘mission control’, the Times reported on Wednesday. If confirmed, Shanks will have oversight over policies that will impact the Scottish economy, including the banning of new offshore oil and gas development licenses and creation of the public company Great British Energy, headquartered in Scotland. Stark will be tasked with turbocharging the shift to clean power, with a goal to reach 100% by 2030.
ASIA PACIFIC
Locked in – The South Australian state government has made a funding deal with its federal counterpart, which will make it the first non-hydro grid in the world to reach 100% net renewable energy, Renew Economy reports. The state and federal governments signed a Renewable Energy Transformation Agreement that will see Canberra underwrite a minimum of 1 GW of new wind and solar generation capacity and another 400 MW of storage to ensure it will meet its target of 100% net renewables by 2027. South Australia already leads Australia – and the world – with a wind and solar share of around 70% over the last 12 months.
Solar investment – Renewable energy Enfinity on Wednesday announced a $164 mln (JPY 26.24 bn) financing for its 250 MW solar PV portfolio in Japan, which consists of seven operating utility-scale solar projects, through a partnership with Macquarie Capital and a syndicate led by Shinhan Asset Management. The portfolio, having an enterprise value of over $1 bln, is expected to produce more than 300 GWh of clean energy annually, enough to power 60,000 Japanese homes and offset 35,000 tonnes of CO2 emissions, according to a company statement.
Methodologies under review – Taiwan’s environment ministry on Tuesday held its first meeting to review two blue carbon methodologies, the first of its kind on the island, according to the Central News Agency. The two methodologies, one about seagrass beds and the other one about mangroves, were jointly proposed by the agricultural ministry and the Ocean Affairs Council. It takes further review from the government to finalise the methodologies, and supplementary revisions should be made as to the measures that can increase carbon sinks and assessments about whether mangrove planting will affect flood control, the report said.
We know the data – The credit card arm of Japan’s Sumitomo Mitsui Financial Group has teamed up with Visa to provide cardholders with a Scope 3 CO2 emissions calculation service, which it claims to be the world’s first, it announced Wednesday. Sumitomo Mitsui Cards will calculate CO2 emissions of the goods paid, based on credit card payment data, and return the results to customers. This will help clients calculate Scope 3 emissions data (Category 1, 6, and 7) more efficiently, the Japanese company said.
Turning portfolio green – Singapore state fund Temasek has so far reduced net carbon emissions attributable to its portfolio by 5% from 2010 levels and hopes to halve it to 11 MtCO2e by 2030, the fund said in its latest sustainability report. It has also set itself a target of net zero emissions by 2050. Moving forward, the fund expects a decline in its Scope 1 and Scope 2 emissions as it continues to decarbonise its operations and invest in less carbon-intensive businesses, it added. From Apr. 1, 2024, it raised its internal carbon price by 30% and will progressively increase it further to $100 per tonne of CO2e by 2030. However, the firm will consider investing in fossil fuel and other carbon-intensive projects if they make environmental as well as commercial sense, Reuters reported. Other potential targets include projects involving metals used in batteries or electric vehicles.
AMERICAS
Patience thins – 83% of Canadian small businesses want the federal carbon tax scrapped, according to a survey of nearly 2,800 respondents conducted by the Canadian Federation of Independent Business (CFIB). The survey was conducted in Apr. 2024, around the same time Prime Minister Justin Trudeau’s 2024 budget detailed that the federal government would remit C$2.5 bln in overdue carbon tax rebates from the federal government. CIFB said this represents less than one-quarter of the amount paid by businesses as entrepreneurs still await details on the size and timing of their rebates.
Canada clean transportation agreement – The Canadian government, the city of Edmonton, and the Canadian Urban Transit Research and Innovation Consortium (CUTRIC) announced Wednesday a combined investment of more than C$1.29 mln for zero emission public transit planning. Under the agreement, Edmonton will complete analysis and planning activities to develop a comprehensive strategy to transition to a full fleet of zero emission public transit buses. The planning project will include an examination of fuel cell hydrogen propulsion technologies and will help the city gain an understanding of the socio-economic, environmental, and technological considerations associated with transitioning its bus fleet to zero emission. Edmonton aims to reach net zero GHG emissions by 2050.
RGGI power – 10 RGGI states have agreed to collaborate on interregional transmission infrastructure in a first-of-kind MoU signed Tuesday. The states of Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island, and Vermont have all agreed to cooperate on exploring mutually beneficial opportunities to increase the flow of electricity in the region and assess offshore wind infrastructure needs and solutions.
SCOTUS contingency plans – US climate envoy John Podesta said Tuesday that the White House anticipated the possibility of the Supreme Court overturning the Chevron Doctrine when crafting and reviewing its major vehicle and power plant emissions standards, reported Reuters. Podesta called the decision “not shocking”, and said the White House’s Office of Management and Budget (OMB) factored such a decision into the various rules. Legal experts have said the ruling from the nation’s highest court would make it more difficult for federal agencies to defend stringent regulations around a variety of environmental, healthcare and other laws.
Kid’s climate lawsuit – Montana’s Supreme Court heard oral arguments Wednesday on a landmark lawsuit decided last year that upended the state’s approach to fossil fuel development, reported E&E News. In Aug. 2023, a state judge ruled that youth have a constitutional right to a stable climate and struck down laws that bar state agencies from considering climate effects. The ruling has also prompted the Montana Department of Environmental Quality to hold “listening sessions” to help it revamp state law and has been cited in a push for the Montana Public Service Commission to include climate effects in regulatory decisions. The trial was considered a first-of-its-kind for youth in the US, and has inspired similar efforts in other parts of the country.
VOLUNTARY
Refreshing its goals – Supermarket chain Asda has said it will not progress its validated science-based 2040 goal with the Science-Based Targets initiative (SBTi) as it stands due to huge growth in its convenience store footprint, up from just three Asda Express locations at the start of last year to almost 500 at present. Most sites have been acquired from the Co-op and EG Group. Asda had previously achieved validation from SBTi to reduce absolute emissions across all scopes by at least 90% by 2040, and has also set interim targets for 2030, including specific GHG emissions reduction cuts from forests, land, and agriculture, the latter of which will not be affected. This is notable as 52% of Asda’s absolute emissions last year were generated upstream in product supply chains, mainly agriculture. Asda will work on new long-term emissions goals for the expanded group operations and will get better data from its new Asda Express sites to do so. The chain will then make a resubmission to the SBTi. Decarbonisation projects underway at Asda include switching heavy goods vehicles (HGVs) from diesel to alternative fuels and improving store energy efficiency. SBTi is currently reviewing its Net-Zero Standard, with rules on the use of carbon credits for offsetting possibly set to be relaxed following consultations. Asda plans to publish a net-zero transition plan in detail in 2025, which will outline how it plans to achieve its targets, said its ESG report. (edie.net)
Big Aspirations – Three years ago, California-based Aspiration Partners leveraged a debit card aimed at sustainable shopping into becoming a promising climate-focused startup with ambitions of a stock market debut valued over $2 bln. Unlike other public green firms focusing on renewable energy, Aspiration emerged from consumer finance. Its rise, as documented in a Bloomberg feature, was supported by celebrities like Leonardo DiCaprio and Orlando Bloom, with its founder, Andrei Cherny, even launching a pro-climate Congressional run. However, the company is now struggling to stay afloat amidst investigations by US authorities like the DOJ and SEC, primarily due to a hasty expansion into selling sustainability services such as tree planting to other businesses. This new business line quickly became its main revenue source, but faced criticism for dubious deals and inflated earnings. Some deals involved shady partners, raising questions about their legitimacy. Former executives have suggested poor internal controls and possible misconduct in revenue reporting. The company’s auditors, KPMG, withdrew without approving financial reports, and its tree planting partner, Eden Reforestation Projects, is suing for unpaid expenses. Despite claiming solvency, Aspiration faces numerous lawsuits and has rebranded its corporate business as Catona Climate, focusing on selling carbon credits. The situation has cast a shadow over Cherny’s congressional campaign, despite his distancing from the company’s current woes.
INVESTMENT
Hydrogen – Canadian clean tech company Ekona Power has received a C$1 mln investment from the Canadian government, the Ministry of Energy and Natural Resources announced Tuesday. Ekona’s methane pyrolysis technology has the potential produce low-cost clean hydrogen while reducing greenhouse gas emissions by up to 90%, the announcement added. It will be deployed in its first field unit next year to demonstrate decarbonisation of upstream oil and gas operations. The project will be built, commissioned, and tested in 2025 for operations in 2026.
AND FINALLY…
Don’t cry about it – US paper manufacturers are raising concerns about the new EU Deforestation Regulation (EUDR), which mandates tracing timber to its origin. They argue that the regulation could disrupt $3.5 bln in trade and increase the cost of products such as diapers (nappies) and sanitary pads. The American Forest and Paper Association claims it’s unfeasible to track all trees used in pulp production due to diffuse supply chains and a typical two-year delay from tree cutting to fibre production. The US supplies approximately 60% of the EU’s fluff pulp, making any disruption significant across the 27-member bloc. The association is advocating for a delay in the law’s implementation, scheduled for the end of the year, and for the pulp sector to be classified as low-risk for deforestation, which would exempt it from traceability requirements. The EU regulation is part of efforts to reduce global deforestation linked to European consumption of various commodities, aiming to ensure traceability of products entering the EU to avoid hefty penalties. Major companies like Procter & Gamble and Kimberly-Clark are adjusting to comply with the new rules, although some US producers have already experienced disruptions in their supply agreements due to the pending regulation. (Bloomberg)
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