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TOP STORY
INTERVIEW: EU oil and gas industry on track to reach 42 mln tonnes of CO2 storage per year
Based on current projects, Europe’s oil and gas producers are on track to reach 42 million tonnes of CO2 stored per year by 2030, falling short of an EU-wide target of 50 mln, the industry’s trade association told Carbon Pulse in an interview.
EMEA
DATA DIVE: What decarbonising the UK power grid by 2030 would look like
The cornerstone of the new UK government’s climate policy – to accelerate the country’s target for 100% clean power to 2030 – has proven divisive, with those who believe it to be pricey and unachievable on one side, against others who say it will be hard, but is worth a shot.
South Africa’s president pushes for green energy as buffer against CBAMs -media
South Africa’s president has urged other developing countries to ditch fossil fuels in favour of green energy in order to avoid having to pay economy-damaging future carbon taxes, Reuters reported on Monday.
Cape Town raises $2 mln from Kyoto Protocol waste-to-energy projects
South Africa’s legislative capital has raised R$36 million ($2 mln) by auctioning credits generated under the Kyoto-era UN Clean Development Mechanism (CDM) from projects that convert landfill-origin methane into electricity.
CCS for traditional steel blast furnaces unlikely to be competitive -think tank
Retrofitting traditional steel plants with carbon capture and storage technology is unlikely to be more cost competitive than investing in newer, hydrogen-based steelmaking, according to analysis by a climate NGO.
Euro Markets: EUAs drop below key technical support amid broad weakness as summer lull gets underway
European carbon prices gave up Friday’s late gains and dropped below a major technical support level that had propped the market up since early July, amid similar weakness across related markets as forecasts for higher temperatures and improved renewables output brought an end to the energy complex’s two-day rally.
AMERICAS
RGGI Market: Prices return to record range amidst low volumes, strong power demand
RGGI allowance (RGA) values jumped over the past week on the back of strong power demand and high summer temperatures, as the futures market witnessed roughly four-month low volumes amidst the ongoing wait for programme review developments.
US DOT outlines decarbonsation strategy for the transportation sector
The US Department of Transportation (DOT) has revealed its plans to reduce greenhouse gas (GHG) emissions to align the sector with the country’s international climate commitments, but emphasised that achieving these goals requires additional support.
US ammonia, biofuels producers combine efforts to reduce carbon footprint of ethanol
Top global producers of ammonia and ethanol based in the US announced a joint effort on Monday to pilot low carbon fertiliser application across US farms, thereby lowering the carbon intensity (CI) of corn used in ethanol production.
BlackRock publishes climate investment guidelines
US-based BlackRock, the world’s largest asset manager, published guidelines outlining its voting strategy at shareholder meetings on behalf of funds with climate-related investment objectives, inclusive of positions on corporate disclosures, shareholder proposals, and board effectiveness.
LATAM Roundup: Brazil pushes biofuels, Colombian high court rules on REDD
Carbon Pulse rounds up developments in Latin American and Caribbean carbon markets for the week ending July 14, in which Brazil reiterated the significance of biofuels in its decarbonisation strategy and Colombia’s Constitutional Court ruled for the first time on REDD projects.
ASIA PACIFIC
SK Market: Monthly KAU auction again oversubscribed, price likely to remain steady until compliance deadline
South Korea’s latest monthly CO2 permit auction was again oversubscribed, with analysts expecting permit prices to remain steady throughout the rest of the current compliance period.
Fossil fuel funding falling from Australian banks, but not fast enough -report
Australia’s banks are still funding fossil fuel projects and their developers at a rate inconsistent with Paris climate targets and their own net zero timelines, a report released Tuesday by activist shareholder group Market Forces said.
ERAC closes first interim process for ACCU method proposals
Australia’s Emissions Reduction Assurance Committee (ERAC) has wrapped up its first expression of interest (EOI) period seeking new methods to generate Australian Carbon Credit Units (ACCUs), with 43 proposals put forward by stakeholders.
China thermal power generation drops in June, renewable energy expansion continues
China saw its domestic thermal power generation decline in June, while renewable energy production continued to grow at a fast pace that could signal a turning point in the country’s emission trend.
INTERNATIONAL
Qatari, Japanese climate institutes sign agreement to facilitate global Article 6 readiness
A Qatar-based research and development (R&D) centre has signed an MOU with a Japanese think tank to accelerate carbon trading under the Paris Agreement, the pair announced on Sunday.
Singapore delegation goes carbon credit shopping in Ghana
Singaporean Minister of State for Trade and Industry Alvin Tan has taken a delegation of 22 companies with him to Ghana this week with the intention of cultivating a pipeline of Article 6 carbon credit projects.
New political risk insurance covers for losses if Article 6 ITMO credits are revoked
A political risk insurance product has been launched Monday that will cover losses for both parties should a project’s host country revoke the authorisation of Article 6 sovereign credits, known as ITMOs.
VOLUNTARY
VCM report: Slight lift in voluntary carbon market prices reflects CCP buzz
There was a slight lift in trading prices across several key indices in the voluntary carbon market last week, reflecting the ongoing interest in the impact of Core Carbon Principles (CCPs) on the market.
INTERVIEW: Rabobank adopts new tool to prevent project overlap following double counting claims
Dutch bank Rabobank has adopted a new tool to prevent overlap with any other carbon projects in the same area to where it plans to operate, following its suspension of project activities in Cote d’Ivoire in response to a government request.
Investors pour $37 mln into firm turning CO2 into solid rock
A climate-focused investment fund has completed a $37 million Series A investment round in a leading provider of carbon mineralisation technology, aiming to accelerate the process of turning CO2 into solid rock for permanent sequestration.
INTERVIEW: US carbon removals developer taps new hire to secure big offtake deals
A US direct air capture developer has named a new director of business development to lure major carbon removals buyers such as Microsoft and Salesforce into big, long-lasting offtake agreements, it announced on Monday.
AVIATION
CORSIA credit demand up in the air amid diverse forecasts for airline emission growth
Carbon credit demand for the first phase of CORSIA, the international aviation offsetting scheme, hangs in the balance with an extreme range between low and high projections of airline emissions, finds a report.
BIODIVERSITY (FREE TO READ)
FEATURE: The big opportunity of insetting for biodiversity markets
Many actors in biodiversity see the largest opportunity for biodiversity markets in ‘insetting’, a way of directly supporting nature in their supply chains while potentially generating biodiversity credits, as an alternative to offsetting.
NGO map shows oil project’s threats to biodiversity-rich park in Uganda
An oil project in the Murchison Falls National Park (MFNP) in Uganda will have a devasting impact on biodiversity, with a number of grave consequences for wildlife and local communities already ongoing, a study has found.
HP partners with nature tech startup to advance mangrove restoration in Indonesia
US technology company HP has teamed up with a Switzerland-based nature tech startup on an initiative aimed at advancing coastal ecosystem restoration efforts in Indonesia.
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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: Our flagship conference returns to the stunning De Vere Grand Connaught Rooms in Covent Garden. As the agenda comes together for our ninth annual event, we wanted to make sure you don’t miss out on our 20% discount offer, which ends Friday, July 19. We’re also offering free passes for offset buyers. Get in touch to find out if you’re eligible and how to apply. Register now!
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Job listings this week
- *Environmental Markets Correspondent, Carbon Pulse – US/Canada (Remote)
- *Head of Carbon Project Development (m/f/d) – Volkswagen ClimatePartner GmbH – Munich
- *Director Carbon Procurement, KliK Foundation – Zurich
- Commercial Director, Carbon, Burn Manufacturing USA LLC – Nairobi
- Technical Manager, Carbon Market Development, Degas Limited – Ghana/Remote
*Premium listings
See all listings or post a job
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BITE-SIZED UPDATES FROM AROUND THE WORLD
INTERNATIONAL
Leading by example – ReNew Chairman and CEO Sumant Sinha has been named Co-Chair of the Alliance of CEO Climate Leaders, the largest CEO-led climate alliance in the world, and a flagship initiative of the World Economic Forum. In joining the community dedicated to raising bold climate action by doubling down on Scope 3 emissions, Sinha will work closely with a cohort of 130-member CEOs across 12 industries on driving strategic priorities of the Alliance. Collectively, this group represents $4 trillion in revenues and 5.2 GT of CO2, equivalent to 10% of global emissions across all scopes. ReNew is dedicated to accelerating the net-zero transition and has mitigated over 21 mln tonnes of CO2 emissions over the past two years, with a portfolio of 21.4 GW of clean energy.
EMEA
Methane crack-down – The first-ever EU regulation to reduce methane emissions has been published in the Official Journal of the EU today, representing the final step before the legislation enters into force. The regulation (EU 2024/1787) sets strict new curbs on emissions from fossil fuel operations across EU Member States, with the latter expected to begin implementing the regulation in 2025. Stringent standards shall also apply to imports from the many oil, coal, and natural gas exporters that supply the EU. Six months after the regulation enters into force, EU member states need to appoint national authorities to ensure compliance with the regulation by EU oil, gas, and coal operators, as well as importers and independent verifiers. While secondary legislation will also come into play by the Commission, detailing the methodology EU importers need to follow when reporting methane emissions. After tackling domestic emissions, the same monitoring, reporting, and verification obligations will apply to EU importers from Jan. 2027.
Taking control – Ed Miliband, the UK’s energy security and net zero secretary, will be leading the charge at COP29 in Azerbaijan this November, in stark contrast to his Conservative predecessors. Under the previous government, the UN climate summit was largely left to junior ministers. The involvement of Miliband, who was the UK’s energy and climate secretary at the Copenhagen climate summit in 2009, where he helped to forge a lasting deal between developed and developing countries, sends a signal of “UK seriousness” and commitment to climate issues, while his diplomacy skills and understanding of climate complexities will be a valued part of the COP29 process, said climate experts. COP29 is likely to be one of the most challenging climate summits of recent years, with climate finance for developing countries top of the agenda, amid a fraught geopolitical backdrop. (the Guardian)
Time to go – Environment Commissioner Sinkevicius resigned on Monday to take up a seat the European Parliament, therefore his duties will pass to executive vice-president Sefcovic. Transport responsibilities will also be handed over to Commissioner Hoekstra, the European Commission reported.
Outsized impact – Maltese consumers will have to pay an estimated additional €7 mln this year on goods ranging from food to furniture as a result of the EU ETS, reports Times of Malta. The extension of the scheme to the maritime sector last January increased the costs for local trailer operators by an average of €100 per trailer, regardless of the load, with about 1,300 trailers using Malta’s Grand Harbour facilities every week. Operators and importers cannot bear the added costs alone and are passing them onto consumers, according to the Association of Tractor and Trailer Operators, ATTO. Joseph Bugeja, chairman of ATTO, argued the tax is “unjust” for islands like Malta that are dependent on sea transports for essentials. It’s not too late to make amends to address the impacts of the ETS, said Bugeja.
Greener farming – Soil Capital has doubled payments to farmers for regenerative agricultural practices in 2024, it announced today, paying out to more than 800 arable and mixed farmers in the UK, France, and Belgium, up from 400 in 2022. Farmer renumeration has grown, thanks to a 16% increase in the value of carbon to £33.05 per tonne, with Soil Capital Certificates sold to companies such as Royal Canin, Roquette, and Boortmalt, it said. Across a 240,000 hectare area of farmland, a total carbon impact of 235,000 tonnes was secured, comprising emissions reductions and carbon storage, said the press release.
Ed goes to COP – The UK’s new energy and net zero secretary, Ed Miliband, will head up the UK’s delegation at November’s COP29 climate summit, in stark contrast to his Conservative predecessors, the Guardian reported. Senior climate diplomacy officials welcomed the move, saying UK leadership would be vital in what is expected to be a fraught summit focusing on climate finance and international carbon trading rules. Christiana Figueres, the UN’s former climate chief, noted that Miliband has “proven” experience at COPs. The previous Tory-led government mostly left the summits to junior ministers.
ASIA PACIFIC
Accelerating A6 – Institute for Global Environmental Strategies (IGES) has partnered with Qatar-based Climate Action Center of Excellence (CACE) to accelerate the implementation of Article 6 of the Paris Agreement and enhance market integrity, the entities announced Monday. The Memorandum of Understanding and Cooperation (MoUC) signed, will last two years and involve capacity-building, stakeholder engagement, technical assistance, development of Internationally Transferred Mitigation Outcomes (ITMOs) markets, and initiating high-quality emission reduction projects. The partnership aims to catalyse advancements in sustainable development goals by providing support and enhanced transparency in ITMO transfers.
Big BESS – BlackRock-owned Akaysha Energy has secured A$650 mln ($440 mln) in debt funding to accelerate development of the 415 MW/1,660 MWh Orana Battery Energy Storage System (BESS) in New South Wales, the largest project of its type in Australia, PV Magazine reported. The system is being build within the Central-West Orana Renewable Energy Zone and will provide energy arbitrage and grid-firming capacity to support the National Electricity Market and the rapid renewable energy rollout. Central to the debt financing is a 12-year ‘virtual toll’ offtake agreement with electricity generator and retailer EnergyAustralia for 200 MW of contracted capacity. Other lenders to the project include ANZ, CBA, and Westpac, as well as BNP, Rabobank, Siemens Financial Services, and Canadian Imperial Bank of Commerce. It is expected to be operational in 2026.
CCUS soon – The Indian government is planning to soon come out with a policy framework to implement carbon capture, utilisation, and storage (CCUS) initiatives in the country and plans to make the ministry of power, the nodal agency to take it forward, the Times of India reported. The Prime Minister’s Science, Technology & Innovation Advisory Council (PM-STIAC) last week discussed various aspects of CCUS and has decided to establish a national portal for projects and to bring all stakeholders together on a common platform. Various ministries participated in the meeting and discussed the need to identify technologies and life-cycle assessment of CCUS projects.
Innovation for CCUS – A research team comprising experts from LG Chemical and the Korea Institute of Science and Technology (KIST) has successfully developed silver nanocatalysts, which are essential for carbon capture, utilisation, and storage (CCUS) technology, it announced on Sunday. Silver nanocatalysts have attracted the attention of researchers as such catalysts show excellent performance in converting CO2 into carbon monoxide, a raw material for petrochemical products such as plastics. The silver nanocatalysts will enable long-term electrochemical conversion of carbon monoxide to CO2 with a small amount of catalyst, which can lower the overall cost of producing carbon monoxide through CCUS.
Work has begun – The Malaysian government has identified four states including Terengganu, Pahang, Sabah, and Sarawak as potential leaders for the development of the CCUS industry in the country. Malaysia’s economy minister said over the weekend that the ministry is collaborating with these four states to ensure smooth implementation of CCUS projects and the order of execution will depend on the commercial readiness of each project. The federal government is in the process of finalising the CCUS-related Bill, which is expected to be tabled in the Parliament by the end of this year.
Smart farms – Thai food conglomerate Charoen Pokphand Foods (CP Foods) is planning to enhance agricultural efficiency and environmental sustainability by implementing “Smart Farm” system across its broiler farms nationwide, Pattaya Mail reported. The company has also intensified its “Forest in Farm” initiative, which focusses on forest preservation and regeneration, biosecurity enhancement, and strategic management of farm trees and carbon credits. The Smart Farm model incorporates smart farming systems and engineering knowledge to create optimal living conditions for livestock, support automation systems, and manage energy efficiently, including using chicken manure to generate electricity. The company plans to expand both these initiatives across its farms and production facilities.
New association – The Malaysia Carbon Market Association has been formed at the first meeting of ASEAN Carbon Market Working Group last week, to accelerate the development of Malaysia’s carbon market. The association will facilitate the development of high quality carbon projects in the country while contributing to the formulation of national policies towards the country’s net zero goal of 2050. It will also be responsible for collaboration with international and domestic carbon market participants to channel funding support towards carbon projects in developing and emerging economies.
Shelved – An Australian biofuels company has shelved plans for its A$500 mln ($338 mln) Queensland biofuels and its website has been taken down, Renew Economy reports. The company withdrew its project from the Environmental Protection and Biodiversity Conservation process on Friday. The project was supposed to start construction last year and begin operation in 2025, using waste tallow, canola, and used cooking oil to produce 350 mln litres of renewable diesel and SAF per year. As well as a refinery, the plan was to build 18 storage tanks, office buildings and warehouses, and employ 60 people. Mining companies have previously raised lack of material biofuel production in Australia as a barrier to decarbonising their vehicle fleets.
AMERICAS
US methane CBAM bill – Representative Julia Brownley (D-CA) introduced last week the Methane Border Adjustment Act (HR 8962), which would establish a tax on methane emissions from foreign oil and gas producers who export to the US. Specifically, the bill would expand on the domestic methane fee enacted by the IRA by extending the same fee to foreign producers. In a press release, Brownley said the proposal would help level the playing field for US oil and gas producers and was designed to be consistent with international trade agreements and WTO rules.
Cement support – Canada’s Minister of Environment and Climate Change Steven Guilbeault on Monday announced the re-investment of up to C$2.2 mln ($1.6 mln) of industrial pollution pricing revenues to fund a new emissions reduction project at St. Mary’s Cement in Ontario. The company will install a speciality cement kiln infrastructure that uses lower carbon fuels to replace up to 30% of the high carbon fuels required for the manufacturing process. This technology will slash some 39,000 tCO2e in 2030. St Mary’s Cement has a net zero target of 2050. This funding came from the industrial pricing system in Ontario and the revenue-return programme called the Decarbonization Incentive Program (DIP), which re-invests output-based carbon revenues from heavy industry and puts it toward eligible facilities for energy efficiency and emission-cutting projects.
VOLUNTARY
Optimal strategy – ClimeCo has launched a new online tool – ClimeCo NatureLink – designed to connect organisations with high-quality, nature-based solution projects that align with their specific goals and budgets. Operating through an online questionnaire, which quizzes potential buyers about preferences like geography, use of credits, desired standards, and financial metrics, the tool generates a list of optimal projects and partners. Companies should be able to pursue their sustainability goals with greater confidence as a result of the tool, claims ClimeCo.
Carbon credit research projects – The Severe Storm Prediction, Education and Evacuation from Disasters (SSPEED) Center and the George Brown School of Engineering at Rice University have announced plans to launch two research projects on nature-based carbon credits, seeking to develop tracking and evaluation systems for the market. In the first project, which is expected to be completed in six months, the SSPEED Center is commissioning the design of a digital MRV system for tracking nature-based carbon credits using satellite and drone imagery to monitor soil, forest, and coastal blue carbon projects. The system will be designed to directly input this data into blockchain and other record-keeping technologies, and Houston-based local nonprofit carbon registry BCarbon will also take part in the project. In the second project, which is expected to take 12-18 months to complete, the SSPEED Center and partners will evaluate whether prairie restoration funded via soil carbon credits could mitigate flooding risk, eliminating the need to raise the 30 miles (48.3 km) of levees in Fort Bend County downstream of the carbon projects. The projects are funded by US-based Emissions Reduction Corp, which has provided the research gift to Rice with the goal of accelerating global decarbonisation through carbon sequestration, avoidance, and reduction projects, according to a Monday release.
SCIENCE & TECH
Research recommended – Production of four major crops – corn, soybeans, rice, and wheat – will not be enough to meet consumption demand if the US and other countries do not ramp up funding for R&D expenditures related to overcoming climate change, according to a report published by the US Department of Agriculture’s Economic Research Service. However, the report also modelled additional scenarios where R&D investments are increased by varying amounts, finding total production would be sufficient under these scenarios to mitigate the impacts of climate change and to meet global demand for food.
AND FINALLY…
Retail therapy – Interest in new and used electric vehicles built by China’s BYD has surged on Auto Trader since the start of the Euro 2024 tournament on June 14, on the back of pitch-side advertising. The online vehicle marketplace has recorded 189,387 views of its adverts for new and used BYD models since the start of the tournament, up 33% compared with 142,537 during the previous month. BYD – an abbreviation of Build Your Dreams – bought prominent slots on electronic scrolling pitch-side advertising boards at the matches in Germany, which were broadcast on free-to-air television in the UK. That included England’s semi-final victory last Wednesday, for which ITV said a peak of 21.6 mln people tuned into its channels to watch, making it the most-watched television programme of the year so far. The BYD Seal, a saloon car, has led the interest in BYD models since the start of the Euros, with its Auto Trader adverts the fourth-most viewed among EVs in that period, preceded by the Tesla Model 3 in first place followed by the Ioniq 5 and the Kia EV9. Brussels is clamping down on cars imported from China, with BYD set to face a total tariff rate of 27.4% on EVs imported from China, though it has agreed a $1 bln deal to build an EV plant in Turkey, as one way to circumvent the duties. (The Standard)
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