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TOP STORY

Indonesian court overturns Rimba Raya REDD project’s permit revocation

An Indonesian court has ruled in favour of the local concession holder of the giant Rimba Raya REDD project, overturning the national government’s revocation of its licence to operate the scheme.

VOLUNTARY

CDR buyers’ club signs $40 mln offtake with US DAC startup, buying credits for $650/tonne

A climate tech startup on Thursday signed a $40-million offtake agreement with a CO2 removals (CDR) buyers’ group for credits from its first US direct air capture (DAC) facility, which has been operational since May.

Voluntary carbon removals standard announces new seawater electrolysis protocol

A voluntary carbon standard on Thursday released for public consultation a new protocol aimed at boosting the reliability of CO2 removal through seawater electrolysis.

Verra seeks feedback on draft early coal-fired closure credit methodology

Carbon standard Verra has put the call out for verifiers to review its draft methodology for accrediting early coal-fired power station closures, it announced Thursday.

Carbon removals criteria updated to include environmental harms, benefits

While carbon removals may be good for the climate, developers and buyers also need to minimise the project’s impact on wider environmental health, and promote benefits, according to updated criteria for high-quality projects, released on Thursday.

City, regional administrations pivotal in scaling CDR solutions -report

Beyond federal governments and supranational organisations, regional and city administrations can play a huge role in scaling up carbon dioxide removals (CDR) solutions, according to a report published Thursday.

INTERVIEW: Startup to cut concrete CO2 by up to 75%, share carbon credits with licensees

A Florida-based startup says it can cut concrete’s CO2 emissions by up to 75% and pay its customers a return on investment of carbon credits over the first 12 months.

INTERNATIONAL

Zimbabwe Article 6 framework to be finalised by year end

The Zimbabwean government has started developing policies for carbon trading under the Paris Agreement and expects to finalise them by end of year, the country’s environment minister told reporters in Harare on Thursday, per local media reports.

COP29 presidency “optimistic” about Article 6, to earmark at least $500 mln for climate finance

Lead negotiators laying the ground for the next UN climate summit are “more optimistic” about two key texts on carbon crediting methodologies and international trade than in the run-up to previous summits, a senior official told Carbon Pulse on Wednesday.

BP raises fossil fuel demand forecast as energy transition slows

BP has raised its oil and gas demand forecasts in a closely followed annual outlook, though still expects global CO2 emissions to peak over the next few years, with 7 billion tonnes of carbon capture needed by 2050 for the world to hit net zero.

EMEA

Two EU member states increase number of EUAs they intend to cancel under ETS flexibility mechanism

Two EU member states have notified the European Commission that they intend to increase the number of EU Allowances they plan to cancel via the bloc’s ETS ‘flexibility’ mechanism to help them achieve their non-ETS emissions reduction targets.

EU carbon removal framework to move forward on peatlands methodology as stakeholders react to name change

The European Union policy on how to define and certify carbon removal activities will move forward in October on a peatlands methodology, while several active in the sector have expressed surprise at a recent change in name of the regulation.

FEATURE: Shaky Dutch coalition govt creates uncertainty for country’s green investors

A decision by the newly formed government in the Netherlands to scrap a number of energy transition policies is leading to uncertainty for the clean technology sector in the country, according to experts, who also fear the new coalition will not survive long.

New govt could boost UK green gilt market, says report

A new Labour government in the UK could boost the green gilt market, a new report published on Thursday has found.

INTERVIEW: Green materials gain traction with automakers ahead of EU’s end-of-life-vehicle regulation

Flax-based materials that can reduce a vehicle’s weight and CO2 footprint are increasingly in demand among automakers looking to meet their decarbonisation goals and get ahead of the EU’s proposed end-of-life vehicles (ELV) regulation.

Euro Markets: EUAs track gas higher, snapping three-day losing streak after finding strong support

European carbon edged higher on Thursday, ending a three-day losing streak as prices moved in line with firmer natural gas and also found strong support at Wednesday’s closing level, despite a downturn in liquidity as the holiday season approached its peak.

AMERICAS

WCI Markets: Delayed implementation of ETS changes overshadows bullish takeaways from ARB rulemaking workshop

California Carbon Allowance (CCA) prices struggled to register upside despite some clarity on ARB’s allowance budget cut plans at Wednesday’s rulemaking workshop, given the unexpected delay in implementation, pushed further to 2026.

California’s LCFS may be increasing emissions beyond the state -report

California’s Low Carbon Fuel Standard (LCFS) falls short in accounting for secondary effects, economists at the University of California said in a report Tuesday, as the recent boom in renewable diesel (RD) production has led to global agricultural land-use change not fully accounted for in the programme.

Smaller refiners file complaints against US EPA, alleging lack of action on 2023 RFS waiver applications

A trio of US refiners filed complaints in federal courts last week against the Environmental Protection Agency (EPA), claiming the agency has failed to act on their applications for small refinery waivers under the Renewable Fuel Standard (RFS).

Brazil near to 90% renewable electricity production, leads G20 pack -analysts

Brazil will host the G20 summit this year after producing close to 90% of its electricity from renewables in 2023, adding pressure on the group of leading economies to step up their decarbonisation efforts after seven countries let power sector emissions rise last year, according to analysts.

Carbon storage ability of Western US forests declining from wildfires, drought -researchers

Forests in the Western US, considered critical carbon sinks, face increasing threats from drought and wildfires, potentially undermining their ability absorb CO2, researchers warn.

ASIA PACIFIC

Australia Market Roundup: Senate report calls on govts to consider CCS bans to protect Great Artesian Basin  

An Australian senate committee looking into a carbon capture and storage (CCS) project has recommended state and territory governments ban similar developments in order to protect the Great Artesian Basin (GAB).

Indian steelmakers face CBAM costs triple those of China, webinar hears

Indian steelmakers will likely have to bear costs three times higher than that of their Chinese counterparts under the EU’s carbon border adjustment mechanism (CBAM) if no effective domestic carbon price is implemented by 2030, a webinar heard Thursday.

BIODIVERSITY (FREE TO READ)

Emissions from plastics set to more than double by 2060, report warns

Lifecycle greenhouse gas emissions from plastics will more than double by 2060 under a business-as-usual (BAU) scenario, with fossil fuel-based production continuing to dominate, according to a statement by 70 financial institutions calling on petrochemical companies to transition to more sustainable alternatives.

GRI to support corporate disclosure alignment with ESRS

The Global Reporting Initiative (GRI) has launched an initiative to steer companies in aligning disclosures under its framework with the European Sustainability Reporting Standards (ESRS).

Nature project incubator focused on stimulating demand, advisor says

Stimulating demand for nature-related projects is a key part of a programme for making English nature projects more investable, a financial advisory company has said.

US asset manager kickstarts biodiversity-focused global fund

A US-based asset manager has announced the launch of a global fund to channel investments towards sustainable food, planning to reach 80% of companies in the portfolio committed to improving biodiversity.

Blended finance fund raises $50 mln to protect Egypt’s coral reef

A $50-million fund to protect Egypt’s coral reef has been launched this week under the Egyptian Red Sea Initiative, a newly established programme supported by the US Agency for International Development (USAID) and the UN-backed Global Fund for Coral Reefs (GFCR).

Brazilian cosmetics company issues R$1.3 bln Amazon sustainability-linked bond

A Brazilian cosmetics company has raised R$1.3 billion ($245 million) with a ‘first-of-its-kind’ sustainability-linked bond (SLB) tied to targets on biodiversity conservation and sustainable sourcing in the Amazon region.

Biodiversity Pulse: Thursday July 11, 2024

A twice-weekly summary of our biodiversity news plus bite-sized updates from around the world. All articles in this edition are free to read (no subscription required).

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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

INTERNATIONAL

What’s in a name – The Board of Loss and Damage Fund (LDF) has decided that the name of the fund will be “Fund for responding to Loss and Damage”. Naming the fund was one of the key objectives of the second meeting of board of the fund being held in Songdo, South Korea this week. On the first day of the meeting, the board unanimously selected Philippines as the host country for the fund, which will now enable the Southeast Asian nation to take legal responsibility for signing formal agreements, along with the World Bank. The LDF was adopted at UN’s COP28 climate summit in Dubai last year.

Steely forecast – New analysis from ResponsibleSteel demonstrates that radical shifts to reduce emissions by a select number of industry leaders or ‘first movers’ will not be sufficient. The entire steel industry needs to take immediate action to make progress on the journey to net zero and this progress needs to be mapped out in a universal language, the report said. According to the analysis, for the industry to meet its Paris Agreement obligations every steel plant in the world needs to be emitting less than today’s average emissions intensity by 2030. In other words, following a 1.5C trajectory, today’s average emitters will become the industry’s worst offenders by 2030 if they do not take steps now to improve.

EMEA

French climate (and nuclear) plan – Ten days after the June 30 deadline, France submitted its final National Energy and Climate Plan (NECP) to the European Commission on Wednesday. The previous draft had attracted criticism from Brussels because it didn’t contain a 2030 target for renewable energies, as required under the EU’s Renewable Energy Directive (RED). According to the Commission, France needs to reach a 44% share of renewables in its energy mix by 2030 in order to take its fair share of the EU-wide target of 42.5%. But the final NECP submitted by France only partially addresses these concerns. While it does mention a target for offshore and onshore wind, those are expressed in TWh, not as a percentage of energy consumption. Overall, the updated plan would bring France’s share of renewables to 41.3% of final energy consumption by 2030, up from around 21% currently, reports Euractiv. The plan does, however, keep an earlier target of 58% for decarbonised energy, which leaves more room for nuclear power.

Clean tech tracker update – Bruegel, the economic think-tank based in Brussels, published an updated version of their clean tech tracker on Thursday. One of the highlights is the importance taken by the EU Innovation Fund, which “is set to become the most important clean tech funding source at the EU level in the coming years,” says Simone Tagliapietra, senior fellow at Bruegel. Another highlight is that hydrogen and batteries have emerged as the two leading technologies when it comes to state aid received from national governments. Electrification, meanwhile, is stagnating. “The share of electricity in final energy demand is fixed at 21% since 2016, while it should grow to 33% by 2030, 51% by 2040 and 62% by 2050” in order to meet the EU’s climate goals, Tagliapietra remarks.

ASIA PACIFIC

Fast pace – China could easily reach 1,200 GW of installed wind and solar capacity by the end of 2024, six years ahead of the 2030 pledge made by President Xi Jinping, if all proposed utility-scale solar and wind projects come online as scheduled, according to a report by Global Energy Monitor (GEM). While China did not sign the tripling renewables commitment at COP28, tripling renewable capacity by the end of 2030 is well within reach even without any new hydropower additions if wind and solar keep adding 200 GW annually as planned, the report said. Despite progress in installations, it remains a challenge for China’s coal-centered grid to absorb the unprecedented renewable surge and deliver the additional power to the demand region, GEM analysts noted.

SAF regulations – South Korea’s refining industry is set to gain momentum with the enforcement of the alternative fuel regulations starting from August 7, which will support the expansion of sustainable aviation fuel (SAF), according to Business Korea. Refiners will be allowed to supply co-processed biofuels at home and abroad, and can use those fuels to meet the country’s national biofuels mandates. S-Oil earlier this year became the first domestic refiner to introduce bio-raw materials, such as waste cooking oil, into the refining process, while HD Hyundai Oilbank last month successfully exported SAF for the first time in South Korea, according to the report.

Forestry project – Japanese project developer ByWill has signed an agreement with Nagano Forestry Association to generate and sell J-Credits through forest management activities, it announced Thursday. ByWill aims to proceed with the procedures and register the project, which could absorb 19,184t-CO2 over the eight-year period, in fiscal year 2024, it said in a statement.

Jarden blooms – Jarden, an investment bank, is expanding its renewable energy trading platform, commtrade, to Australia, anticipating increased demand for carbon credits as companies aim to meet net zero targets. Commtrade, operational in New Zealand for a decade, enables digital transactions of renewable energy certificates and carbon credits, addressing the traditionally phone-based bulk trading in Australia. Jarden’s initiative aims to boost liquidity and transaction volumes in the carbon credit market and enhance integration between trading, advisory, and research sectors. This move comes as trading volumes surged last year due to companies seeking offsets for unavoidable emissions. Jarden has also appointed Benjamin Coles as head of energy transition to facilitate integrated financial and emissions management services for clients. (AFR)

Ambitious goals – India’s State-owned Oil and Natural Gas Corporation (ONGC) will invest around $27 bln to establish renewable energy sites and green hydrogen plants in an attempt to achieve its net zero carbon goal by 2038, Economic Times reported. The oil company will also establish energy capacity including biogas, a pump storage plant, and an offshore wind project. As a result of these projects, ONGC will be able to offset around 9 MtCO2e, it is directly or indirectly responsible for. ONGC has listed clean energy projects even though it plans to boost its hydrocarbon output to meet India’s energy needs.

Announcements – Indian climate tech firm’s in-house monitoring, reporting, and verification (MRV) technology, Artisan dMRV, has been certified by Carbon Standards International. Through its Biochar Circular Economy Project, Varaha, in collaboration with Gujarat government, played an important role in the removal of Prosopis juliflora, an invasive species in the Banni Grasslands of Gujarat. Varaha repurposed the invasive species as biomass for its Kon-tiki biochar project, which benefitted the community through job opportunities, helped in grassland restoration, and also sequestered CO2e. Mirroring the success of Banni project, Varaha has now expanded its operations to other regions and states including Rajasthan and Karnataka. To date, the Kon-tiki biochar operations have resulted in the production of 2500 tonnes of biochar and have sequestered 5,500 tonnes of CO2e. Separately, Varaha is scaling its operations globally and diversifying into different methodologies, with the support of advisors like David Antonioli, former principal CEO of Verra, and Lucas Joppa, former chief environment officer of Microsoft. The firm has also ventured into enhanced rock weathering (ERW) and is eyeing projects that generate more credits at less cost.

AMERICAS

ARB in question – Voluntary carbon offsets developed and sold by Finite Carbon in the US, also eligible for compliance under California’s cap-and-trade scheme, offer limited to no benefit to the climate, the Guardian reported Thursday. Analysis was completed on three of Finite Carbon’s projects – a 200,000-hectare forest in Washington state owned by the Confederated Tribes of the Colville Reservation, a 68,000-hectare project run by corporation Sealaska, and a 39,000-hectare site in West Virginia – worth an estimated $334 mln combined. The investigation was conducted by ratings agency Renoster and non-profit CarbonPlan, as commissioned by non-profit SourceMaterial. Using satellite imagery, Renoster said the projects have been over-credited and found regions to be gerrymandered, or in uneconomical terrain for harvest – such as in deep ravines or steep territory. Renoster’s findings, which suggest around 79% of these credits should not have been issued, echo its similar February rating and findings regarding BigCoast, a forest carbon project in British Columbia developed by Mosaic Forest Management Corporation. California regulator ARB defended the agency’s offset programme, and said it has been successfully litigated in court to deliver real, quantifiable, and additional benefits. Finite Carbon, acquired by BP in 2020, claims to manage over 1.6 mln hectares of conservation projects, representing more than a quarter of the US’ carbon credits. It also defending its projects as independently verified and compliant with California standards.

Cali CDR policy – A California bill on CO2 removals (CDR) will make the next step in its legislative journey to inch closer to becoming law, according to legislative filings on Monday. SB 308 would require the California ARB to adopt specified standards and targets for CDR. It was amended in the Assembly Natural Resources Committee and passed on a 9-2 vote to head to the Assembly Appropriations Committee as of Monday.

Golden State offshore goals – The California Energy Commission (CEC) on Wednesday adopted a strategic plan to guide the state’s development of offshore wind energy. The plan outlines analysis and strategies to deploy floating turbines off the state’s central and northern coasts with a goal of 25,000 MW of capacity by 2045. CEC said the state’s electricity grid is served by nearly 35,000 MWs of renewable resources today, but to meet its 2045 goal of 100% clean electricity, the state will need an additional 148,000 MWs.

SMR retried – Dominion Energy announced Wednesday that the company hopes to build a small modular nuclear reactor (SMR) in Virginia in the 2030s, reported local public media outlet WHRO. Dominion is opening a request for proposals from nuclear technology companies to evaluate how feasible it is to build an SMR at the company’s North Anna nuclear plant. Virginia Governor Glenn Youngkin (R) has advocated for investing in the nascent industry for years as part of his ‘all of the above’ approach to energy. The SMR would be the first such commercial facility in the US. In Nov. 2023, Portland-headquartered nuclear company NuScale Power canceled its commercial scale SMR facility in Utah in what was considered a blow to the industry.

EPA lawsuit list grows – Colorado-based company Westmoreland Mining has filed a petition to review against US Environmental Protection Agency (EPA) power plants emissions standards finalised in April. The move follows an existing series of challenges against the EPA’s suite of standards, with many questioning the feasibility of the rule that requires existing coal-fired and new natural-gas fired power plants to capture 90% of their emissions by 2032. In May, a federal judge rejected a request from 25 Republican state attorney generals and a rural electricity cooperative for an immediate stay, but left the door open to a longer-term pause. The Biden administration last week indicated that it is targetting a Dec. 2024 date for the issuance of draft regulations for existing natural gas facilities.

Marathon fine – Marathon Oil has agreed to pay a record $64.5 mln fine and invest around $177 mln in compliance measures to address violations of the Clean Air Act at its operations on the Fort Berthold Indian Reservation in North Dakota. This settlement, announced by the EPA and the Justice Department, aims to significantly reduce emissions of volatile organic compounds and methane from the company’s facilities. The fine is part of a broader climate enforcement initiative by the EPA and is the largest ever imposed for stationary sources under the clean air statute. The deal, which Marathon has not admitted any liability to, is pending approval following a public comment period. This agreement comes amid a broader investigation into Marathon’s practices, including allegations of submitting low estimates for emissions and sidestepping permitting requirements, which led to substantially higher actual emissions than reported. (E&E News)

VOLUNTARY

Partners – Carbon offset insurers Oka and policy administration system Socotra have initiated a strategic partnership focused on enhancing the reliability of carbon markets and expanding climate change solutions. This collaboration combines Oka’s dynamic team and advanced AI capabilities with Socotra’s innovative policy administration technology to introduce two pioneering insurance products within a year. These products are designed to stabilise carbon credits and include Corresponding Adjustment Protect and Carbon Protect, which safeguard against post-issuance risks like project failure. The alliance supports Oka’s aim to insure every carbon credit, leveraging Socotra’s modern technology which impresses Oka’s leadership.

Keep on movin’ – Ciara McCarthy, a sustainable agroforestry and natural climate solutions expert, has joined Climate Impact Partners as Head of Technical Due Diligence. She will focus on enhancing the firm’s quality assurance process. McCarthy joined from Verra where she directed the Natural Climate Solutions team.

INVESTMENT

ARR/agroforestry acquisition – Sao Paolo-based carbon market firms Systemica announced Thursday the acquisition of Arapua, a Para-based company that originates and implements ARR and agroforestry projects in the Amazon biome. The pair said the goal is to originate 1,500 hectares of projects and begin the implementation of at least 500 hectares by the end of 2024. Systemica said that Arapua – previously known as Remata – will also developer to leverage local knowledge and capacity in Para, a state that has designs on selling over 100 mln carbon credits. Financial details of the deal were not disclosed.

Keep kolum and carry on – Berlin-based B2B startup kolum has raised €2.1 mln in pre-seed funding to enhance its platform designed to help companies comply with the EU’s Carbon Border Adjustment Mechanism (CBAM). This regulation, effective from Oct. 2023, requires companies in the EU importing certain products like cement and steel from non-EU countries to account for CO2 emissions. Kolum’s platform supports these companies and third-country manufacturers by facilitating accurate emission data calculations and sharing, using a CBAM-specific method. The funding will be used to speed up product development and expand support to more companies both within and outside the EU. The initiative, led by FoodLabs with contributions from several ClimateTech and B2B SaaS experts, aims to simplify compliance with carbon pricing regulations and manage the complexities of carbon costs in international trade. (tech.eu)

AND FINALLY…

Green U-turn – The UK Conservatives lost election votes to the left due to Rishi Sunak’s watering down of green measures introduced by Boris Johnson, suggests a new poll by More in Common. Climate change was one of the top three reasons given by voters of Labour and Liberal Democrats for supporting these parties on July 4, above housing and crime, while renewable energy was linked to reducing the cost of living. More than 70% of those polled backed Labour’s plans for GB Energy, a state-run company designed to fund the move to green energy, while a majority of Conservatives and Reform voters also thought the state-run firm would be beneficial for the UK. In the so-called Blue Wall heartlands of the south, the Conservatives lost more than 30 seats to the Lib Dems, and also came second in Waveney Valley in Cambridgeshire behind the Greens.

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