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TOP STORY
ANALYSIS: Voluntary carbon market welcomes ICVCM renewables decision, cites limited price impact
Voluntary carbon market stakeholders mostly welcomed the decision made by the the Integrity Council for the Voluntary Carbon Market (ICVCM) to reject renewables methodologies from the sought-after Core Carbon Principles (CCPs) quality label, adding that they expected a limited market impact.
EMEA
Spanish wind and solar projects secure loans to bolster EU energy independence
Two renewable energy projects in Spain will borrow €85 million from the European Investment Bank (EIB) under EU plans to reduce dependence on fossil fuel imports.
Industry set to suck up lion’s share of Flanders’ ETS revenue out to 2030, report argues
Heavy industry will consume as much as 80% of the EU ETS revenue earmarked for the Belgian region of Flanders from now to 2030, leaving scant funding behind to finance decarbonisation and a just transition, according to analysis by an environmental think tank.
FEATURE: EU carbon intensity limits will be the bigger driver in cutting shipping fuel emissions
The EU regulation mandating shipping companies to lower their fuel’s greenhouse gas intensity will be a bigger driver for shipping companies to switch to cleaner fuels than including the sector in the EU ETS, experts say.
Euro Markets: EUAs edge higher on afternoon gas rally, weak UKA auction sends futures lower
European carbon prices struggled at times for direction on Wednesday, amid the lack of a daily auction and wider macroeconomic and geopolitical uncertainty as they eventually found support from an afternoon TTF gas rally, while news that investment funds trimmed their net short position 25% last week did little to move prices, and UKAs slumped over 2% due to a significantly weak fortnightly auction.
AMERICAS
ANALYSIS: Piecing together Chile’s carbon pricing jigsaw could sharpen public policy
Proposals for interlocking carbon pricing instruments in Chile could refine public policy instead of muddying the waters, but cohesive design and strategic approaches will be key, according to experts.
US SEC defends contested climate disclosure rules
The US Securities and Exchange Commission (SEC) filed a brief on Tuesday in defence of its challenged climate-related disclosure rules.
US Democratic lawmaker introduces legislation to encourage Scope 3 disclosures
Congressman Adam Schiff (D) of California on Wednesday introduced a bill that would direct the US Environmental Protection Agency (EPA) to establish voluntary guidelines for companies to disclose their Scope 3 emissions, seeking to promote transparency on corporate carbon footprints.
Emitters, green groups flag concerns over draft Oregon CPP rules
Oregon’s recently proposed Climate Protection Program (CPP) rulemaking could potentially create emissions leakage, according to stakeholder comments in a public consultation process, which also raised concerns over cap adjustment and the impact of compliance costs.
California watchdog hears CCS deployment concerns, discusses revenues under proposed cap-and-trade changes
Carbon management projects currently lack oversight and need improved guardrails for implementation, panellists at a session held by California’s carbon market watchdog said Wednesday, while others detailed their input on ARB’s considerations for allowance budget removals in the most recent rulemaking workshop.
US emissions monitoring company launches carbon credit trading platform, completes first transaction
A US company specialising in environmental measurement technology has announced the launch of its carbon credit trading platform, and the first transaction sourced from measured diesel engine emissions.
Summer turnover in North American carbon traders
Three environmental market traders have changed firms over the summer, Carbon Pulse has learned.
ASIA PACIFIC
AU Market: ACCU issuance hits new yearly record even as July trade slumps
Issuance levels for new Australian Carbon Credit Units (ACCU) hit a new high in financial 2024, exceeding record volumes in 2023, even as trade in July hit a nine-month low, a carbon consultancy said this week.
Japanese trio to develop integrated decarbonisation solution
One of Japan’s largest trading houses has formed a partnership with two domestic companies to develop a combined decarbonisation solution for corporate clients.
China 2024 emissions may stay flat if energy demand growth continues, report says
China’s CO2 emissions fell in the second quarter of 2024, marking the first quarterly decrease since the nation re-opened from zero-Covid, though the whole-year emissions are likely to stay flat if energy demand growth continues.
Chinese dairy firm to introduce biogas project, create international credits
A dairy product supplier in China is planning to tap into the international carbon market by launching a biogas utilisation project.
Singapore sends energy transition bill to Parliament for first reading
Singapore has introduced an energy transition bill to Parliament for its first reading to progress its decarbonisation process via introducing guardrails for the electricity market, strengthening the Energy Market Authority’s (EMA) ability to regulate the power sector, and to establish the Future Energy Fund.
Japanese power giant joins Australian CCS hopeful, government hands out more permits
Carbon capture and storage work is ramping up in Australia as one project proponent handed two offshore permits last week on Wednesday announced another partnership with a Japanese giant, and the federal government handed out three new offshore permits.
INTERNATIONAL
FEATURE: Commonwealth promotes its model carbon tax, as CBAMs boost interest
The Commonwealth of Nations is speaking to three jurisdictions about implementing a model carbon tax law that its secretariat published last year, and is planning to further promote the law at COP29.
Rich-poor divisions threaten to delay and weaken next round of Paris pledges, report warns
A growing rift between developing and developed countries over how to interpret last year’s Global Stocktake of Paris Agreement progress, and ongoing negotiations over a new climate finance goal, threaten to delay and weaken the third generation of national pledges, a think-tank warned on Wednesday.
Global wind capacity set to double by 2030, missing the tripling target -think tank
National targets by governments could boost global wind capacity by just over double by 2030 – falling short of the global goal to triple capacity by the end of the decade, a think tank has found.
VOLUNTARY
Commodities giant abandons coal divestment plans as shareholders object
A large commodity firm has announced it will keep its coal business, less than one year after saying it would exit the sector, following shareholder pressure.
Verra updates voluntary carbon REDD methodology to match CCP definition
US carbon credits certifier Verra has issued a ‘corrections and clarifications’ document to align the definition of ‘forest’ to that of the Core Carbon Principles (CCP) Assessment Framework of the Integrity Council for the Voluntary Carbon Market (ICVCM).
Aramco buys domestic carbon credits to lower shipment emissions
Saudi Aramco has purchased carbon credits from a compatriot carbon market participant to offset residual greenhouse gas (GHG) emissions from a shipment of Arabian light crude.
Pollination partners with forestry nonprofit subsidiary to support ARR carbon projects
The London-headquartered investment and advisory firm and a US-based subsidiary of a forestry-focused nonprofit will partner to identify suitable afforestation, reforestation, and revegetation (ARR) projects for carbon credits.
US blockchain firm expands carbon platform services with first South American franchises
A US blockchain environmental registry announced Wednesday the opening of franchises in Argentina and Paraguay.
US carbon removals firm launches sales platform
A US-based startup has this week launched an online platform that enables individuals, households, and small businesses to buy carbon removals credits.
Scientists say nature-based credit markets must prove additionality before sales
Nature-based carbon and biodiversity markets should only sell credits after their impact has been scientifically proven in a bid to make them credible and scale investments, a new study has said.
Big fashion falls short of climate targets, new report finds
A recently published report has revealed the world’s biggest fashion brands are not moving quickly enough to align with the global goal of limiting temperature rise to 1.5°C above pre-industrial levels.
AVIATION
Virgin Atlantic “100% sustainable aviation fuel” ad judged misleading
Virgin Atlantic’s pledge to run future flights on fully sustainable aviation fuel is misleading consumers, according to an official UK judgment published on Wednesday.
BIODIVERSITY (FREE TO READ)
Think tank launches framework to scale nature investments in Global South
An Indian think tank has launched a framework to try to drive investments in nature-based solutions (NBS) in the so-called Global South by measuring their potential benefits.
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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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Premium job listings
- Environmental Markets Correspondent, Carbon Pulse – US/Canada (Remote)
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BITE-SIZED UPDATES FROM AROUND THE WORLD
INTERNATIONAL
Timeline debate – Delegates at the 61st meeting of the Intergovernmental Panel on Climate Change (IPCC) in Sofia, Bulgaria have failed to agree on a timeline for the upcoming seventh assessment report (AR7) cycle. AR7 will be the IPCC’s latest round of reports summarising the most recently published climate science. These reports, first published in 1990, typically take 6-7 years to complete and AR6’s concluding summary for policymakers was published in March 2023. Many countries favour an accelerated timeline, in which all three working group reports would be complete by June 2028, in time for the findings to inform the UN’s second global stocktake, to gauge progress towards the Paris Agreement goals. Ahead of last week’s meeting, a group of 40 IPCC authors from developing countries published an open letter arguing the AR7 reports must be published by this date to remain policy relevant, however, countries including Kenya, India, China and South Africa opposed the accelerated timeline and ultimately, the decision on a timeline was delayed. The issue will be revisited after the AR7 scoping meeting in December.
Article 6 update – The following countries have now submitted their Host Party Participation Requirements for Article 6.4 to the UNFCCC: Togo, Morocco, Benin, Myanmar, and Dominican Republic. While the latter two have detailed their approved activities under Article 6.4 and their contributions to sustainable development. Further, 88 Parties have communicated their Designated National Authorities (DNAs) for Article 6.4 to the UNFCCC, with 67% of African countries, 52% of Asian countries, and 43% of the Americas.
EMEA
Summit superpower – Plans for Britain to become a ‘Clean Energy Superpower’ will feature prominently in the country’s upcoming International Investment Summit on Oct. 14, as it looks to attract investment in support of its plans to deliver 100% clean power by 2030. The CEOs of BNY Mellon, Blackstone, and CyrusOne all confirmed they would attend the Summit during a trip by UK Chancellor Rachel Reeves to New York this week, with the event expects to bring together up to 300 industry leaders. The International Investment Summit will come just two weeks ahead of the UK Budget where Reeves will attempt to marry the government’s message that “Britain is open for business” with her attempts to balance the books, which have prompted speculation about new tax rises and spending cuts. (BusinessGreen)
Off target – Northern Ireland and Ireland are set to miss their 2030 renewable energy target by at least two years, forecasts Cornwall Insight. The consultancy firm says that just 70% of the grid will be using renewable sources by 2030, rather than the 80% goal both jurisdictions have set. That said, the Single Electricity Market boasts the highest contribution of wind generation of any power system globally, with Northern Ireland at 45.8% of electricity generated from renewables in 2023, and Ireland at 42%. Planning delays and a shortage of grid connections are hampering the energy transition there, says the consultancy, which forecasts that renewable generation will reach 82% in 2032. Northern Ireland is currently designing its own renewable energy support scheme, with the first auction anticipated for 2025/26 and most procured capacity expected online after 2030. (BBC News)
Coal disappoints – Coal has been incapable of providing a stable supply of baseload power in Turkiye, according to a report by energy think tank Ember. The low capacity factor and availability rate, as well as frequent production losses have led to multiple breakdowns in coal power supply in the past years. The available capacity ratio of domestic coal power plants in Turkiye has been 52%, while 22 TWh of annual generation have been lost due to malfunctions. Meanwhile coal power accounts for 20% of Turkiye’s total emissions.
Polish upgrades for EVs – Poland will spend €696 mln from the EU’s Modernisation Fund to expand the electric vehicle charging network in Poland. At least 80% of the programme’s budget will be used to subsidise the construction and expansion of infrastructure of the grid. The Modernisation Fund is financed via the sale of 4.5% of EU carbon allowances. (PAP Business)
EU updates corporate sustainability reporting rules guidance – The European Commission has updated its frequently asked questions on the implementation of the EU corporate sustainability rules, as part of its efforts to reduce administrative burden for companies that have to comply. The Corporate Sustainability Reporting Directive entered into force on 5 January 2023, the first set of companies subject to the new rules must start reporting in 2025, for the financial year 2024.
South Africa carbon tax update – The South African National Treasury opened a consultation on Aug. 1 on several tax proposals, including the Carbon Tax Act, Bloomberg Tax reports. This would involve aligning the Carbon Tax with updated GHG emission guidelines, and introducing a renewable energy premium deduction.
ASIA PACIFIC
Geothermal research – Taiwan’s state-owned oil company CPC Corp. has signed a Memorandum of Understanding (MoU) with Academia Sinica and the National Central University to conduct research on geothermal technologies, it announced this week. Academia Sinica is the island’s highest academic research institution with research teams focusing on geological studies, while the university has extensive experience in detection projects. Prior to the signing of the MoU, the three organisations had discussed the geothermal resources around the Datun Mountain, CPC said.
Eco survey – A survey connected by Malaysian developer Karbon Hero has found that 9 out of 10 respondents reported anxiety triggered by climate change news. A further of 8 out 10 respondents were found to be experiencing guilt about their overall carbon footprint and personal emissions. The climate change and eco-anxiety survey was conducted in collaboration with Universiti Teknologi Malaysia (UTM) on 400 corporate professionals from various organisations in Malaysia. Further, almost 100% of respondents expressed concerns that the next generation faces significant risk due to the detrimental impacts of climate change. Meanwhile, about 80% of the respondents were willing to reduce their energy consumption in energy conservation efforts, while 89% were committed to reducing, recycling, and reusing materials. 48% consider switching to electric vehicles, and 66% supported buying local products to minimise their carbon footprint.
AMERICAS
IRA credit in the works – Data from the US Department of Treasury showed more than 3.4 mln households in 2023 received $8 bln in tax credits under the Inflation Reduction Act (IRA) for making energy and efficiency upgrades, E&E News reported Wednesday. In many cases, Americans are saving up to 30% of the upfront cost of switching to greener options. Many of the credits were utilised by people offsetting their purchase of rooftop solar power, which totalled 750,000 households. Nearly half of all households claiming credits had incomes of less than $100,000. Meanwhile, less than 300,000 households sought a tax credit for electric or natural gas heat pumps, which was roughly equivalent to the number of households that used the tax credit to install insulated exterior doors.
Energy tax credit support – Some 18 members of the House Republican Conference have urged House of Representatives Speaker Mike Johnson (R) to prioritise businesses and market certainty in efforts to “repeal or reform” the IRA. In their letter to Johnson, the group indicated support for energy tax credits, noting that prematurely repealing such credits would “undermine private investments and stop development that is already ongoing”. A full repeal would create a “worst-case scenario” where billions of taxpayer dollars would be spent without any outcome, they added. Energy tax credits have “spurred innovation, incentivised investment, and created good jobs in many parts of the country,” they said, expressing support for an “all-of-the-above” approach related to energy development and tax credits.
Fuel producers scrutiny –The US Environmental Protection Agency (EPA) has launched investigations into the supply chains of at least two renewable fuel producers amid industry concerns that some could be using fraudulent feedstocks for biodiesel to secure lucrative government subsidies, Reuters reported Wednesday. EPA spokesperson Jeffrey Landis told the outlet that the agency has launched audits over the past year. However, the spokesperson did not identify the companies targeted as the investigations are ongoing. The EPA audits began after the agency updated domestic supply chain accounting requirements in July 2023 for renewable fuel producers seeking to earn credits under the RFS, Landis said.
Zefiro acquires P&G – Developer Zefiro Methane on Tuesday announced that its subsidiary Plants & Goodwin (P&G) has secured the remaining common shares of P&G from the entity’s CEO Luke Plants in exchange for newly issued preferred stock in P&G. This follows Zefiro’s move in May 2023 to acquire an initial 75% ownership stake in P&G. Following the transaction, Plants has been promoted to the CEO of Zefiro Services and Executive Vice President of Business Development.
Deep Sky development – Canadian CDR company Deep Sky announced Wednesday that it has selected Innisfail, Alberta, as the site of its innovation and commercialisation centre, Deep Sky Labs. operational this winter, with the capacity to capture 3,000 tCO2/yr via up to 10 different technologies, and will also include room for future expansion. Eight DAC technologies will be deployed at the lab at the beginning, including from Skytree, Avnos, Skyrenu, Airhive, and Mission Zero Technologies. Deep Sky said the technologies will be tested and optimised for performance year-round in the Canadian climate and validated before committing to commercial scale. The CO2 collected will be sequestered at Meadowbrook Carbon Storage Hub facility operated by storage partner Bison Low Carbon Ventures, which also announced Wednesday that the hub had been granted an initial 15,360-ha Carbon Sequestration Agreement from the Alberta Minister of Energy and Minerals. Bison said it expects initial sequestration operations at the hub, designed to sequester 3 Mt annually when fully developed, to begin in 2025 if approvals go through. Deep Sky said it is still actively looking for DAC developers interested in deploying at its lab. The firm also announced Wednesday that it has made progress on pre-feasibility studies for assessing the potential of Becancour and Thetford Mines in Quebec for carbon storage.
VOLUNTARY
VCM partnership – Climate financing platform Opna has partnered with AlliedOffsets to enhance its platform capabilities and provide access to market data on carbon removals for its users and customers, according to a LinkedIn post. AlliedOffsets is an aggregated data source for carbon offsetting and removal while Opna works with corporates to discover, finance, and manage pre-assessed carbon removal and reduction projects.
Carbon removals appointment – M. Kemal A., head of growth at direct air capture company Climeworks, has been announced as the new President of the Negative Emissions Platform, where he will bring his expertise in carbon removals, engineering, and strategy to supporting NEP continue its mission to combat climate change through innovative carbon removals.
BBC goes net zero – The British Broadcasting Corporation (BBC) has had its net zero target verified by the Science-Based Targets initiative (SBTi), committing to a 90% reduction in emissions with no more than 10% offset by 2050. This builds on the broadcaster’s existing near-term targets to almost halve Scope 1 and 2 GHG emissions by 2030, and to reduce absolute Scope 3 GHG emissions 28% within the same timeframe. The BBC aims to be nature positive, net zero, and people positive through educating and inspiring people to support climate and nature, it said in a statement on Wednesday.
AND FINALLY…
Doctor who? – A June study from researchers at Drexel University in Philadelphia found that climate change could lead to more missed doctor appointments as temperatures rise. The study analysed more than 1 mln appointments over the course of 10 years at medical facilities in Philadelphia, and found that temperature fluctuations of just one degree below 39F and above 89F were correlated with an increase in no-show appointments. Additionally, the association between temperatures and missed appointments was stronger for patients with chronic conditions and older patients. Authors said the findings suggest the need for primary care physicians to explore different modes of care delivery to support vulnerable populations, such as making telemedicine during extreme weather events a viable and affordable option.
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