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TOP STORY
Voluntary carbon credits on the table under SBTi revision of corporate net-zero standard
The Science Based Targets initiative (SBTi) will formally consider the use of voluntary carbon credits under its corporate net-zero standard, according to technical papers published Tuesday, with proposals outlined that would allow companies to use units towards climate targets under certain circumstances, though no decision will be made until the end of 2025.
ANALYSIS: Long way to go before SBTi decides on voluntary carbon credit use under net-zero standard
Following the publication of technical documents by the Science Based Targets initiative (SBTi), which included both scenarios for including carbon credits under its revised net-zero corporate standard as well as a paper describing their use as risky and ineffective, voluntary market stakeholders have reacted with confusion at the developments and expressed frustration at the long wait until a final decision.
EMEA
BP scales back plans for biofuel projects, focuses on oil
BP tilted further away from the energy transition as it published bumper second quarter results, announcing it was scaling back plans for new biofuels projects and investing in Gulf of Mexico oil production, a month after it emerged that it has put further investment in offshore wind projects on pause.
Germany prepares to launch second CCUS-focused subsidy auction for industry
Germany is preparing a second carbon capture, utilisation and storage (CCUS)-focused bidding round as part of its ‘climate contracts’ funding programme for energy-intensive industries.
INTERVIEW: Steelmakers flag unsolved issues with CBAM, warn of ‘very high risks’
From definitive default values for imported goods to anti-circumvention rules on trade, there are still plenty of unknowns associated with the EU’s Carbon Border Adjustment Mechanism (CBAM) that make the bloc’s carbon tariff a very high risk policy, according to the European steelmakers association, Eurofer.
DATA DIVE: The countries and sectors facing the highest CCS costs in Europe
Countries around Europe have adopted ambitious policies in order to capitalise on the emerging carbon capture and storage (CCS) industry – but costs are set to differ significantly across sectors and countries, according to pricing data shared with and analysed by Carbon Pulse.
INTERVIEW: PPA buyers need to temper price expectations, says consultancy
Corporate buyers of renewable energy need to temper their expectations on price when signing long-term contracts for electricity, as the impacts of inflation and higher financing costs mean that these deals come at a premium to buying power on the spot market, according to a sustainability advisory.
Airlines divided over international flights exemption from EU ETS reporting obligations
Most European airlines and aviation groups are convinced that an exemption from mandatory reporting of greenhouse gases for international flights can smooth the implementation of the EU’s Emissions Trading Scheme (EU ETS), although others are asking for stricter controls, just a few months before draft EU rules come into force.
Euro Markets: EUAs post late rally to unwind early losses after support emerges at technical level
European carbon prices surged at the end of Tuesday’s session to erase nearly all of the day’s earlier losses as the market found robust support at a key technical level, with EUAs appearing still to take its cues from volatile natural gas markets, while UK carbon permits sank to a new 11-week low as speculators continued to unwind long positions.
ASIA PACIFIC
New Zealand on track to meet first emissions budget, Climate Change Commission finds
New Zealand is on track to reach its first interim emissions reduction target based on a swathe of data assessed by the independent Climate Change Commission, but uncertainty persists, its inaugural annual monitoring report released Tuesday found.
Japan livestock farming hub to promote offset projects, develop crediting methodology
One of Japan’s agricultural cooperatives has teamed up with several domestic partners to kick off a comprehensive emissions reduction programme in the hope of driving down emissions from the country’s livestock sector.
Australian Market Roundup: Mining giant loses climate advisor over “hypocrisy”
The Australasian Centre for Corporate Responsibility (ACCR) has pulled out of its advisory role with Australian mining giant Rio Tinto after just a year, with the activist shareholder group saying Tuesday it was the result of revelations Rio “engaged in negative advocacy that undermines a public commitment to an enhanced approach to climate advocacy”.
AMERICAS
Potential Maryland cap-and-invest programme would help fulfil state climate goals -report
An economy-wide cap-and-invest programme in Maryland would help the state achieve its climate and decarbonisation goals if designed and implemented carefully, according to a recent report published by a Washington DC-based non-profit.
INTERNATIONAL
INTERVIEW: Embracing DC microgrids can accelerate housing development, renewables
Houses in the UK could be built faster, and with more solar panels installed, if direct current (DC) microgrids were used to alleviate pressure points on the electricity network where the supply-demand crunch is particularly acute, say experts working to promote the benefits of DC technology.
VOLUNTARY
Microsoft acquires 80,000 CO2 removals from US forest project
Microsoft has purchased 80,000 carbon removals from a forest management project in California, it was announced on Tuesday.
ICVCM launches forum to help cash flow to local communities, Indigenous Peoples
The Integrity Council for the Voluntary Carbon Market (ICVCM) has launched an independent forum to give Indigenous Peoples “a strong voice” in ensuring finance from carbon credits flows to local communities.
Carbon removals firm closes $30 mln Series A funding
A US-based durable carbon removal startup announced the successful closing of a $30 million Series A funding round on Tuesday.
Carbon RX and Manitoba rancher ink deal for grassland carbon credits
Canada-based Carbon RX has signed an agreement with a Manitoba rancher to enroll their land into a regenerative grassland management programme.
Carbon Capture Scotland partners with Toronto-based company for digital MVR for biogenic carbon removal
Carbon Capture Scotland has partnered with a Toronto-based company to launch a digital monitoring, reporting, and verification (MRV) system for the tracking of CO2 from biogenic carbon removal projects, the two announced on Tuesday.
SHIPPING
Miner and maritime heavyweight ink MoU for clean shipping
Australia’s Fortescue, an iron ore giant with a sideline in clean energy, has signed a non-binding agreement with a shipping company to collaborate on decarbonising the sector.
BIODIVERSITY (FREE TO READ)
INTERVIEW: Most biodiversity credit methodologies fail to address uncertainty
Existing biodiversity credit methodologies largely fail to address uncertainty in measuring biodiversity change, which could result in misleading assessments of nature conservation and restoration projects, researchers have told Carbon Pulse.
One approach to measuring biodiversity credits gains momentum -research
A single approach to measuring nature is emerging as the core method across disclosures, targets, and biodiversity credit markets, researchers said in an article seen by Carbon Pulse.
TNFD, GRI release joint guidelines to enhance disclosure alignment
The Taskforce on Nature-related Financial Disclosures (TNFD) and the Global Reporting Initiative (GRI) have released guidelines to help companies align their nature-related disclosures.
Biodiversity Pulse: Tuesday July 30, 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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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 10% discount offer, which is available throughout August. 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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BITE-SIZED UPDATES FROM AROUND THE WORLD
EMEA
Penalty effect – Forecasts from EU’s Copernicus Atmosphere Monitoring Service show increased surface ozone concentrations across a large part of Europe, due to increasing summer heatwaves. The exceedance of the ozone concentrations, which poses significant health and environmental risks, are forecast for the Paris region, Benelux, Germany, and the Po Valley in Italy. This highlights the significant role played by precursor emissions, often emitted far from the locations where the pollution episodes take place, scientists note. The trend could be more frequent with the rising number of heatwaves and extreme temperatures, called ‘climate penalty effect’.
Budget boost – The UK is increasing its renewable energy budget to a record £1.5 bln in an upcoming auction, in an effort to reach its goal of a zero-carbon grid by 2030. About £1.1 bln of the total will go to offshore wind farms, a 38% increase from the original record-setting budget allocated by the last government, Bloomberg reports. The amount was decided this week by Energy Secretary Ed Miliband, though the numbers aren’t finalised yet and could change. Funding will come from charges on energy bills rather than the central government’s budget, and it’s not yet clear how much the new measures will cost consumers. The Contracts for Difference mechanism allocated by way of the auction will guarantee developers a fixed price to sell power for 15 years, with bill payers to plug the gap if the market price for power falls lower than the contract stipulates.
Utility request – The CEO of ScottishPower Keith Anderson plans to double the company’s investments in UK energy projects to as much as £24 bln if Labour’s policy changes pay off. The utility’s current programme is to spend £12 bln in the years to 2028, but if the government can halve the time required to get UK projects through planning, Anderson aims to double the amount invested. ScottishPower supplies energy to 4.4 mln homes and businesses, builds onshore and offshore wind farms, and runs vast tracts of the power grid across Scotland, and parts of England and Wales. Its investment would go towards supporting more wind energy and improving the size and scope of the grid, he said. (the Standard)
ASIA PACIFIC
We made it – South Korean filtration technology provider Synopex has succeeded in obtaining 12,300 Verra-certified carbon credits from the operation of a water purification plant in Indonesia, it announced Tuesday. This is the first time that a Korean water treatment company acquired voluntary carbon credits, Synopex said. The company is also planning to secure additional credits by supplying 250 eco-friendly water purification systems to 3 mln people in Pakistan.
Market expansion – Japanese trading company Kanematsu and agri-tech firm Towing have begun efforts to expand the use of “Soratan,” a high-performance biochar, in the US market, they announced Tuesday. A pilot project has been implemented in a soybean field in Ohio owned by KG Agri Products, the companies said. Towing has been promoting a business model that can reduce the use of chemical fertilisers and create carbon credits.
New partnership – Offset project developer Bywill, which aims to help all 47 prefectures in Japan achieve carbon neutrality, has teamed up with Eurus Energy to utilise the latter’s renewable energy business and promote the creation of carbon credits, it said in a statement. Eurus Energy, which operates wind and solar power generation businesses across the country, will work with Bywill to create and distribute environmental value according to local characteristics, the statement said, without giving a business target.
Impractical and unfair – India has declined to accept the EU’s proposal to levy higher taxes on its high-emitting industries, India’s Economic Affairs Secretary Ajay Seth told Reuters in an interview. Seth said that the EU’s Carbon Border Adjustment Mechanism (CBAM) is “impractical and unfair” and does not work for developing economies such as India. EU officials are trying to win over countries that have opposed CBAM including China, South Africa, and India, Reuters added. Earlier this month, officials from the European Commission pledged to work closely with India to help it adapt to the incoming CBAM fees and also introduce its own ETS. The EU delegation also suggested India implement its own carbon tax to fund advancements in supply chains and cut carbon emissions, while maintaining its share of the EU market, the media outlet added. Seth said that greening the major emitting industries would entail higher costs for the economy and that the EU must adhere to rules agreed in the 2015 Paris Agreement, which allowed developing nations more flexible emission-cutting targets compared with developed countries.
AMERICAS
Trillion-dollar-opportunity – Treasury secretary Janet Yellen said $3 trillion in new capital is required each year to combat climate change, E&E News reported Tuesday. Yellen said the transition to a low-carbon economy was the “single greatest opportunity” of this century, and emphasised the need for stronger climate finance policies after meeting with G20 finance ministers in Belem, Brazil. Yellen added that failing to address climate change and biodiversity is not just bad environmental policy, but also bad economic policy.
SCOTUS CCS case request – The US Supreme Court (SCOTUS) has asked the Biden administration to weigh on a request to stay submitted last week by a group of Republican-led states and industry groups for the EPA’s controversial power plant standards, reported E&E News. Chief Justice John Roberts asked Solicitor General Elizabeth Prelogar to respond to the stay request by Aug. 19. A lower federal court earlier this month rejected a stay request from the same group of petitioners.
NYCI need – A group of climate, environmental justice, and clean energy organisations in New York issued a joint statement Tuesday urging Governor Kathy Hochul (D) to advance regulations for an “ambitious and equitable cap-and-invest programme with strong guardrails for disadvantaged communities as soon as possible.” The Empire State’s future economy-wide cap-and-invest programme, dubbed NYCI, saw its preliminary outline released in Dec. 2023. A June report from nonprofit research group Resources for Future found that obligating the electricity sector and including facility-specific caps under NYCI – which is set to exclude the use of offsets – would help reduce leakage and protect disadvantaged communities from the adverse effects of GHG emissions.
Sequestration speak – The US Bureau of Land Management (BLM) has extended the public comment period on the Moxa Carbon Storage project in Wyoming until Aug. 30. If approved, the project would store CO2 permanently in nearly 605,100 acres (244,900 hectares) of sub-surface federal pore space beneath Lincoln, Sweetwater, and Uinta counties. However, a BLM assessment earlier this month revealed that the project could displace or disrupt numerous species. Interested parties can find contact information to submit comments here.
Sorbents solution – US direct air capture (DAC) company CarbonCapture and materials science firm W. L. Gore & Associates last week announced a multi-year agreement to develop advanced structured sorbents for atmospheric CO2 removal. This adds to the firms’ ongoing collaboration since 2022 to develop advanced materials designed to economically remove large amounts of CO2. As part of their latest agreement, Gore will develop advanced materials for DAC to protect sorbents against the degradation associated with using direct steam as a heating medium for regeneration.
VOLUNTARY
Forest concession consultation – Brazil’s National Bank for Economic and Social Development (BNDES) and the Brazil Forest Service (SFB) opened last week a public consultation for the previously announced forest concession on around 15,000 hectares Bom Futuro National Forest in Rondonia. An SFB official said the agency foresees investment of B$600 mln into the federal restoration project, which it said will be the first such project in the country to generate carbon credits. Members of the public can submit comments on the project until Aug. 23, and feedback will be presented at a public meeting later that month.
New start – Neustark, a Switzerland-based carbon removal firm, has appointed Christoph Kisker as Chief Revenue Officer (CRO). Kisker joins Neustark from software-as-a-service company Celonis, where he was a senior leader. As CRO and a member of Neustark’s executive team, Kisker will lead commercial functions to scale neustark’s growth globally, according to a Tuesday press release.
Email exchanges – Brazilian developer Ituxi Group – reportedly the target of a fraud investigation by the nation’s Federal Police known as Operation Greenwashing – exchanged a series of emails with its project partner, Carbonext, prior to launch of the operation, reported Folha de Sao Paulo. Carbonext allegedly detected and demanded explanations from Ituxi for an overlap between private and public land two months after the generation of credits from the Evergreen project, but alleged criminal ringleader Ricardo Stoppe Junior hurled accusations back at Carbonext, the local outlet reported. Carbonext told Folha it subsequently filed a lawsuit to stop the project, suspend the sale of credits, and cease receiving revenues, according to the report. An injunction then stopped the project for ten months, but a Sao Paulo judge ordered the project resumed in Aug. 2023 after Ituxi presented new documents of its ownership of the area in question, the outlet reported. Carbonext suspended all activities related to the projects involved in June, and has not been accused of any wrongdoing.
SCIENCE & TECH
Less CH4, more N2O – Efforts to reduce methane emissions, particularly in agricultural settings, may spur the release of nitrous oxide, according to research published in peer-reviewed journal Science. Microbial communities may respond to methane mitigation efforts by producing more nitrous oxide, which reduces or even negates the positive climate impact, researchers at the University of Alberta and the University of Washington wrote. Mitigation approaches need to monitor for these trade-offs, the academics said, or else risk more damage to the environment than intended.
AND FINALLY…
Dirty emails – Sending and receiving emails emits around 1,344 tonnes of carbon a day, according to research by the email validation service Zero Bounce. The study is based on an estimate that one email transaction emit about 0.3 grams of CO2, and looks at the number of emails estimated to be sent from several countries. The US leads the way, emitting 3,207 tonnes of CO2 from 9.7 bln emails a day, followed by Germany with 2,810 tonnes from 8.5 bln emails per day, and Ireland with 2,777 tonnes from 8.4 bln emails. The UK ranked fifth, and India ninth.
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