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TOP STORY

US EPA awards $4.3 bln targeting almost 1 bln tonnes in emissions cuts by 2050

The US Environmental Protection Agency (EPA) announced on Monday $4.3 billion in grants to 25 selected applicants for proposed projects that aim to cut nearly 1 billion tonnes of CO2e by mid-century.

ASIA PACIFIC

BRIEFING: ASX Environmental Futures contracts will be a tale of two credit types, carbon market participants say

The Australian Securities Exchange (ASX) is set to launch futures contracts for the Australian and New Zealand carbon markets later this month, however participants say the level of participation and interest will vary considerably between the two jurisdictions.

South Korea to allow for CCUS in ETS accounting

South Korea has circulated a proposal that would let CO2 removed through carbon capture, utilisation, and storage (CCUS) be deducted from company emissions accounts under the nation’s emissions trading scheme, according to local media reports.

APAC countries should consider complementary policies to ensure effective carbon pricing -IMF

Policymakers in the Asia Pacific should take into consideration complementary policy options such as power sector reforms and fuel tax changes when drawing up carbon pricing schemes, according to the International Monetary Fund (IMF).

Permit surplus in China ETS negligible, according to govt data

The surplus of CO2 permits in China’s national emissions trading scheme fell to negligible levels in the previous compliance cycle, according to government data released over the weekend.

EMEA

BRIEFING: EU looking into ways to simplify CBAM as early as 2025 -EU official

The European Commission is looking into ways to simplify the EU’s Carbon Border Adjustment Mechanism (CBAM) from as early as next year, the head of the Commission’s taxation unit told Carbon Pulse.

New EU Commission to focus on energy prices, industrial decarbonisation

The policy programme of the new European Commission is beginning to take shape after Ursula von der Leyen was confirmed in her role last week as the head of the EU executive for another five-year term, with a new electricity market reform on the horizon to enable deeper decarbonisation of industry.

UK will struggle to meet its goal for clean power by 2030, research warns

The UK’s new government faces a “substantial challenge” in decarbonising the power system by 2030, an analytics and consulting firm warned on Monday – the same day London proposed changes to align its capacity markets with reaching net zero emissions by 2050.

Anti-greenwashing rules should drive EU sustainable finance growth -report

The European Union will need to maintain its position as a global leader in sustainable finance, driven by high consumer demand and a set of regulations against greenwashing that are due to improve next year, according to research published last week.

Euro Markets: EUAs drop to lowest since mid-April as selling pressure picks up and energy weakens

European carbon prices plunged to their lowest in three and a half months on Monday as constant selling pressure and a slew of put options elbowed buyers aside, while energy prices weakened amid an improving gas supply outlook and cooler temperatures, and carbon analysts highlighted changes to the auction programme that mean there will be no cuts in volume sold next month.

International oil company seeks approval to store carbon under the English Channel 

An international oil and gas company is seeking approval for its plans to build a new CO2 pipeline under the English Channel.

AMERICAS

RGGI Market: RGAs break record on continued compliance demand

RGGI Allowances (RGAs) broke their all-time high settlement twice over the past week but on light volumes, with traders largely attributing market strength to ongoing compliance demand.

California diesel, gasoline consumption in April drops as retail prices soar

California diesel sales in April fell below last year’s levels for the first time in 2024, while gasoline monthly consumption continued to remain below 2023 usage into the start of the second quarter, state data published this week showed.

Canadian firm plans to build $3 bln clean fuel refinery, with CCS and solar

A Vancouver-based firm specialising in renewable energy projects intends to build a C$3 billion ($2.18 bln) refinery and solar farm east of Moose Jaw in Saskatchewan, incorporating the latest green technology.

LATAM Roundup: Policy pronouncements display enthusiasm for carbon markets

Carbon Pulse rounds up developments in Latin American and Caribbean carbon markets for the week ending July 21, which saw new pronouncements and high hopes for measures in countries such as the Dominican Republic, Mexico, Brazil, and Argentina – but fitful progress.

Brazil’s Para state opens public consultation on forest concession for carbon projects

The government of Para in Brazil has opened a public consultation regarding a pilot concession for forest conservation projects to generate carbon credits and other environmental assets.

VOLUNTARY

VCM report: Green shoots hard to find in voluntary carbon market as summer slump continues

There were few signs signs of recovery across the voluntary carbon market last week, traders warned, as this year’s summer slump continued.

Canadian offset developer writes off investments as losses mount in delayed filings

A Canadian offset project developer will require additional fundraising to fulfil its streaming contracts, it said last week, as its delayed annual financial statements revealed a $250,000 investment write-off.

Study finds close balancing act for carbon storage in world’s forests

The world’s forests have been finely balancing carbon sequestration for the past three decades as the ability of some forests to store the greenhouse gas has dropped while others expanded, a global study of 30 years of data to 2019 found.

Tokyo-based developer proposes first cookstove methodology for JCM

A Japanese developer has become the first to propose a cookstove methodology under the Joint Crediting Mechanism (JCM), potentially paving the way for a boost of supply for the scheme.

INTERVIEW: Ethanol lobby group pitches ‘fermentation CCS’ as low-cost carbon removal technology

A global bioethanol alliance says biogenic CO2 from fermentation can be stored at a cost of less than €100 per tonne. So why is it not on the IPCC’s list of carbon removal technologies?

Climate tech startup secures $10 mln to expand water-based CDR technology

An Israeli climate tech startup has completed a seed funding round to scale and deploy its water-based CO2 removal (CDR) technology. This latest round brings the total funding raised by the company to $10 million.

Developer of carbon removals-plus-renewable gas tech secures $13 mln in new funding

A Colorado-based developer of projects combining carbon sequestration and renewable gas has secured around $13 mln in equity financing, which it said will help to commercialise its technology.

AVIATION/SHIPPING

Field to flight: Researchers reveal environmental dilemmas in SAF production

A new study offers a nuanced look at the impact of land use changes required for sustainable aviation fuel (SAF) production, underscoring the environmental trade-offs involved in replacing kerosene with biofuels derived from six different types of crops.

BIODIVERSITY (FREE TO READ)

Suriname eyes biodiversity offsetting in updated national plan

Suriname has released its updated National Biodiversity Strategy and Action Plan (NBSAP) under the Kunming-Montreal Global Biodiversity Framework (GBF), setting out actions to ramp up funding for nature conservation and restoration, including exploring biodiversity offsetting.

Malaysian Indigenous group takes governments, palm oil firm to court for breaching land rights, endangering biodiversity -watchdog

An Indigenous Peoples group in Malaysia’s Pahang state has filed a court case against a palm oil plantation firm as well as the state and federal governments over a proposed palm oil project it says breaches their land rights and endangers wildlife.

PCX Markets records surging demand for plastic credits

Singapore-headquartered marketplace PCX Markets has seen a sharp increase in demand for plastic credits, claiming the sale of units on its platform helped fund the recycling or upcycling of 9,000 tonnes of plastic waste last year.

ICYM

POLL: Analysts lift EU carbon price forecasts, but expect enduring bearish factors to cap any gains

Analysts have nudged up their short- and medium-term forecasts for EU carbon allowances, though most repeated expectations that any prices rises will remain limited by weak demand from emitters and ample supply.

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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 want 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

• *Director Carbon Procurement, KliK Foundation – Zurich
• *Head of Carbon Project Development (m/f/d) – Volkswagen ClimatePartner GmbH – Munich
• *Environmental Markets Correspondent, Carbon Pulse – US/Canada
• Sales and Marketing Director, Carbon Markets, Degas Limited – Japan
• Chief Science & Policy Officer (Co-Founder), Kanop – Paris/Remote (Europe)
• Product Management Lead, Taking Root – Remote (Canada)

*Premium listings

See all listings or post a job

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BITE-SIZED UPDATES FROM AROUND THE WORLD

INTERNATIONAL

Climate fund critique – The launch of the Climate Finance Action Fund last Friday with an initial target of $1 bln has been slammed by activists who deem it ‘greenwashing’ given that it aims to raise voluntary financing from oil and gas producers and fossil fuel-producing nations. The ‘initial concept’ will only become operational once 10 countries have signed on and the initial startup money has been found. Gas-rich Azerbaijan has not disclosed how much it planned to contribute, or if other fossil fuel countries or companies have expressed any interest. Li Shuo, an expert on climate negotiations at the Asia Society Policy Institute, said the proposal was an “empty shell” until it had actual money behind it. Azerbaijan “has also set itself a daunting task of soliciting the support of some of the least progressive countries in global climate action,” he told AFP. Others questioned whether voluntary mechanisms would be enough, calling for a proper levy on fossil fuel production instead. (France 24)

EMEA

Net zero nimbys – The UK government will need to “take on net zero nimbys” and boost public sector investment in order to decarbonise the country’s homes, transport, and electricity system by 2030, according to think tank the Resolution Foundation. Projects required to meet the goal, including new solar farms, battery storage, and onshore wind turbines, are likely to face resistance from local groups and many renewables projects are likely to take place in wealthier parts of the country, with two-thirds of proposed solar projects in the richest 40% of neighbourhoods, said the think tank. Options to tackle the friction could include taking responsibility out of local hands to unblock development, or providing financial incentives to smooth opposition, it said. (the Guardian)

Mini reactor suite – The UK Labour Party is preparing a suite of mini nuclear reactors that will mainly be built and sited in the north of England, inews reports. The strategy for Great British Energy will be laid out before Parliament breaks up for summer on July 30 and nuclear power is expected to play a key role, including a rollout of small mini reactors (SMRs). Rolls-Royce, one of six companies vying for the first order of SMRs, is currently manufacturing and testing prototypes at the University of Sheffield’s Advanced Manufacturing Research Centre, while potential sites for the first SMRs include Moorside at Sellafield in Cumbria, Wylfa in Anglesey in North Wales, and Oldbury in Gloucester. Mini-reactors are expected to be much cheaper, easier to manage, and safer than a much larger site such as Sizewell in Suffolk or Hinckley Point in Somerset.

Chinese biodiesel – The European Commission last week announced the imposition of preliminary antidumping duties against Chinese biodiesel from 16 August. The general duty for Chinese producers is set at 36.4%, while cooperating parties are being given a 23.7% duty. In addition, three other companies are benefitting from lower duties ranging between 12.8% and 25.4%. “Today is a great day for the [European] biodiesel industry,” said Angel Alvarez Alberdi, secretary general of the European Waste-based and Advanced Biofuels Association. He welcomed an end to “extremely adverse” market conditions since late 2022.  Over the past two years, the European biofuels market has been flooded with cheap Used Cooking Oil (UCO) imports from China. Some believe that much of this UCO is actually fraudulently labelled palm oil, which is associated with deforestation. On Friday, NGO Transport & Environment urged the Commission to “move away from an industry-led verification process towards more stringent regulation”. The European Biodiesel Board, which filed the anti-dumping complaint in Oct. 2023, welcomed the duties but said it was “gravely concerned at the EU’s unexpected exclusion of dumped Chinese Sustainable Aviation Fuel (SAF) from these provisional measures”.

Your move, Morocco – The Moroccan Customs and Indirect Taxes Administration has revealed plans to study adoption of a carbon tax and carry out stakeholder consultations as part of its Strategic Plan for 2024-28 (Maghreb Arabe Presse). The announcement comes after reports last September that the government planned to undertake a study regarding CO2 tax implementation in 2024 after years of delays. A communique from the International Monetary Fund (IMF) last October also suggested willingness from the North African country’s Ministry of Economy and Finance to produce and implement a carbon tax design by Feb. 2025. Renewed vigour in the plans comes in the wake of the EU Carbon Border Adjustment Mechanism (CBAM), and the Moroccan tax in question may cover the same five sectors as the CBAM to help minimise this tariff, according to the IMF.

ASIA PACIFIC

Known ambition – China’s ruling Communist Party has set long-term policy goals at a high-level political meeting held last week, including ‘deepening reform in ecological conservation systems’, government documents showed. Improving the national ETS and the newly relaunched voluntary carbon market is among the key policy tasks, according to a communique released after the Third Plenum, a meeting traditionally associated with major economic reforms. While this is the first time carbon emissions have been mentioned in a plenum document, the paper does not specify any new targets or relevant measures for the climate sector.

Kay bye – Kay Harrison, New Zealand’s climate change ambassador, has resigned after five years in the role. She stepped down just as the government was set to roll out major climate policies – many of which have been criticised by climate experts. A spokesperson for the Ministry of Foreign Affairs and Trade (MFAT) said a decision on a replacement has not yet been made.

AMERICAS

BC CDR funding – The British Columbia Centre for Innovation and Clean Energy (CICE) is investing C$7.6 mln of non-dilutive funding into clean energy and climate solutions in BC, the nonprofit announced Monday. Nine projects were funded in total, including carbon removal firms Arca at C$1.2 mln and CO280 at C$1 mln, which focus on carbon mineralisation and bioenergy with carbon capture and storage, respectively.

US renewables – The US won’t meet its climate goals or decarbonise its electric grid by 2050 unless it adopts additional reforms to speed the interconnection process, MIT researchers said in a paper published in peer-reviewed journal Science, reported Utility Dive. A national transmission strategy will support development and interconnection of renewable energy resources, but regulators should also consider how to provide maximum economic incentives for renewable energy.

VOLUNTARY

Quebec RFP update – Montreal-based Inlandsis Fund opened a Request for Proposals (RFP) on Friday for GHG reduction projects in Quebec. Previously announced at the Carbon Forward North America conference in Toronto in June, the RFP will be the first for the province for Inlandsis. The tender will remain open until Aug. 24, Inlandsis said, and is seeking proposals from a variety of project types, including biochar, afforestation and reforestation, CCS, sustainable forest management, and more. The fund also said it has over 40 small- to medium-sized projects in its portfolio, and aims to reduce the equivalent of 24 MtCO2 over the next decade.

AND FINALLY…

Made in the shade – Officials from a tiny environmental group flew into Washington DC last week to propose a very big idea for limiting global warming: a trillion-dollar parasol for the planet. Representatives of the Planetary Sunshade Foundation — a non-profit that advocates for space-based solar geoengineering — met with officials from the White House, the State Department, the House science committee and congressional offices on both sides of the aisle, according to Morgan Goodwin, the group’s unpaid executive director. The foundation was established in 2021 and has just four staffers, all of whom have other day jobs. The level of interest in Washington for building a gargantuan umbrella in space to block sunlight “exceeded my expectations,” Goodwin said in an interview with E&E News, before he planned to meet with the White House National Space Council. “I’ve done enough advocacy to tell when somebody’s just asking questions to be polite and when they’re really engaged.” Support for solar geoengineering research has surged in recent years among policymakers, philanthropists and scientists as the human and economic toll from climate-related disasters has grown. It comes as global efforts to reduce the use of coal, oil, and gas — the main drivers of climate change — continue to founder.

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