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TOP STORY
INTERVIEW: Argentine carbon markets diversify as they expand, embrace J-REDD
Argentina’s carbon markets are growing rapidly and poised to shift away from reliance on waste management and renewables projects to embrace a broader array of credits, a jurisdictional REDD (J-REDD) developer told Carbon Pulse.
VOLUNTARY
Renewable energy voluntary carbon credits “running out of steam”, say analysts
Interest is waning in voluntary carbon credits from renewable energy projects, according to analysis published in the wake of a decision made by the the Integrity Council for the Voluntary Carbon Market (ICVCM) to reject related methodologies from the sought-after Core Carbon Principles (CCPs) quality label.
Credit retirements for H1 2024 consistent with last year for volume and buyer type -report
Some 104 million carbon credits were retired in the first six months of this year, mirroring the total from H1 2023, and with most sold to companies in the energy sector in alignment with previous years’ trends, according to the latest AlliedOffsets Corporate Buyers Report.
BRIEFING: As ICVCM rejects key voluntary carbon methodologies, Dominican Republic pushes crediting renewables as sustainable development
While the Integrity Council for the Voluntary Carbon Market (ICVCM) rejected this week multiple renewable energy carbon crediting methodologies from its Core Carbon Principles (CCP) label, citing additionality concerns, the Dominican Republic (DR) is pushing forward on expansion plans for these projects in the frame of sustainable development.
High integrity carbon markets a “game changer” for developing countries -World Bank
Carbon markets globally are being held back due to a lack of trust, but they could be a game changer in advancing climate action and bring tangible benefits, especially for developing countries, according to a report published by the World Bank.
INTERVIEW: Cement plants could make considerable profit from selling waste heat for direct air capture
A German direct air capture startup is offering cement plants the opportunity to make extra revenue from their waste heat, which it can use to improve the efficiency of its CO2 capture process and generate carbon removal credits.
Non-profit launches carbon credit programme to fund safe water systems across Africa, Latin America
US-based non-profit Global Water Center (GWC) has launched a programme to fund rural water systems by using carbon credits in countries across Africa and Latin America.
Hong Kong firm, Singapore-based developer collaborate to launch certified tree planting projects
A Hong Kong-based corporate tree planting solutions provider has teamed up with a Singapore-based offset developer to launch a certified tree planting scheme, the firms announced this week.
Carbon registry, marketplace team up to enhance trading and retirements
An international carbon registry and a marketplace for environmental commodities have integrated their technologies in an effort to make carbon credit transactions and retirements more accessible, transparent, and efficient.
New climate platform launched for the Global South
A new climate and capacity-building tool for the Global South was introduced this week with the aim to enhance access to knowledge and resources, particularly in climate finance, and overcome barriers to entry in the region.
Climate solutions provider announces new product for Scope 3 emissions within agricultural supply chains
A global climate solutions provider announced on Thursday the launch of its supply chain emissions reduction product.
Canadian offset project financier rakes in $11.2 mln from Rwandan, Vietnamese projects
A Toronto-headquartered carbon project financier announced Thursday that it has received $11.2 million from the sale of carbon credits from its Vietnamese household device and Rwandan cookstove projects.
Canadian partnership to test robotic tree planting for carbon offsets
Two Canadian companies signed a Memorandum of Understanding (MoU) Thursday to test and validate an autonomous tree planting technology for the generation of voluntary carbon offsets.
EMEA
UK’s offshore tax hike can drive investments towards low-carbon energy -consultancy
The UK government’s decision to hike the windfall tax on offshore oil and gas isn’t all bad news for energy companies, according to an energy consultancy that argues it could help to focus energy investments on decarbonisation.
Drax is the UK’s biggest source of carbon despite receiving half a billion in green subsidies -report
Drax – the UK’s largest generator of power from biomass – is by far the country’s largest source of carbon emissions, despite receiving more than half a billion pounds in green subsidies, according to a new report published on Friday.
Italy’s new law to cut red tape for renewables
The Italian government passed a draft legislative decree on Wednesday, aiming to cut red tape for the production of energy from renewable sources.
Uniper becomes latest utility to post double-digit EU fossil power generation drop
German power company Uniper posted a significant fossil-based power generation slump over the first six months of the year, relative to 2023, amid ongoing demand weakness that continues to pressure EUAs.
Euro Markets: EUAs move up tracking gas as market continues search for direction
EUAs continued to closely track TTF gas prices on Thursday, as they once again bounced back off a key technical resistance level before briefly breaching it late in the session, with the market generally struggling to find a clear direction amid quiet summer trading and a lack of fundamental influence.
AMERICAS
WCI Markets: CCAs rebound from YTD lows, but continue to trail WCA prices
California Carbon Allowance (CCA) prices reversed course from year-to-date lows this week, but remained below Washington Carbon Allowance (WCA) figures amid the ongoing WCI market bearishness due to programme reform implementation delay.
California CDR bill faces long road to resolving outstanding question marks
A California senate bill on CO2 removal (CDR) regulations has yet to resolve key considerations as it weaves through the legislative process, while little progress on the implementation of carbon, capture, utilisation, and storage (CCUS) legislation stalls it further.
US DOE gives out $44 mln towards geologic CO2 storage
The US Department of Energy (DOE) announced Thursday it is allocating $44.5 million in funding towards nine university- and industry-led projects to advance knowledge of the potential of geologic basins to permanently store CO2 emissions.
ASIA PACIFIC
Korean marine regulator to support international mitigation projects
South Korea’s ocean affairs regulator is seeking opportunities to provide financial support for international mitigation projects in the marine sector through a newly formed partnership with an inter-governmental organisation.
Japanese climate tech firm raises $5.3 mln in latest fundraising round
A Tokyo-based climate tech company on Thursday announced it had secured $5.3 million in the second close of its Series C round.
China to publish 70 national carbon-related standards this year
Chinese regulators have released a work plan to standardise carbon emission calculations across key sectors, which can support the country’s dual carbon targets and carbon pricing schemes.
Australian science body funds Vietnam carbon farming
Australia’s leading science body is funding carbon farming in Vietnam via an agricultural innovation programme.
SHIPPING
Green shipping pioneer Maersk makes a U-turn on LNG
One of the largest shipping companies in the world, Maersk, has backtracked on its previous anti-liquefied natural gas (LNG) position by announcing plans to purchase ships capable of running on the fuel, highlighting the difficulty of lowering shipping emissions.
BIODIVERSITY (FREE TO READ)
Brazilian startup to issue first biodiversity credits for endangered plants in 2025
A Brazilian startup has finalised a biodiversity credit pilot project in a private rural area in the country, planning to publish its methodology focused on conserving and restoring endangered plant species in the next few weeks and make the first transaction by mid-2025, the company told Carbon Pulse.
French investor considers generating Costa Rican biodiversity credits
A French asset manager is considering generating voluntary biodiversity credits from a conservation project in Costa Rica, part of which is preparing to produce carbon credits, Carbon Pulse has learned.
Pegasus Capital looks to invest in nature opportunities with system-wide impacts
US-headquartered private equity investor Pegasus Capital Advisors is looking to invest in nature-related companies via its land and ocean funds to help improve the sustainability of entire economic systems.
INTERVIEW: Biodiversity markets could help Venice recover from lagoon ecosystems disaster
A Venice-based conservation group is eyeing the biodiversity credit market to save the Italian city’s lagoon ecosystems from destruction driven by shipping and mass tourism.
Egyptian NGO partners with energy firms to protect migratory birds in the Gulf of Suez
An Egyptian nonprofit conservation group is launching a large project to protect thousands of migratory birds from the threats posed by electricity power lines in the Gulf of Suez, it announced on Thursday.
Only 4% of major companies target water pollution, nature benchmark shows
Just 4% of major companies globally have set targets to reduce their water pollution, the World Benchmarking Alliance said in a survey published on Wednesday.
Biodiversity Pulse: Thursday August 8, 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!
Chile Carbon Forum – October 8-10, Santiago: The forum will bring together experts, business leaders, and government officials to discuss challenges and opportunities within the carbon market. It will cover topics such as carbon taxes, offsetting mechanisms, climate finance, carbon market regulations, international cooperation, nature-based solutions, and innovative emission reduction strategies. The agenda includes panel discussions, workshops, and keynote speeches that emphasize the importance of these topics in promoting a low-carbon economy and combating climate change. This forum is crucial for understanding and advancing collaborative approaches to sustainability. For more information, visit Chile Carbon Forum.
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BITE-SIZED UPDATES FROM AROUND THE WORLD
INTERNATIONAL
Heat blast – The Great Barrier Reef — the Earth’s largest living ecosystem — faces an existential threat, as ocean temperatures reach their highest levels in 400 years, say scientists. A new study by Australian researchers says that unless global warming is halted, future generations may not be able to enjoy this natural wonder. Sea surface temperatures surrounding the GBR reached their hottest levels in over 400 years this year, the study found. Since 2016, the reef has experienced five summers of mass coral bleaching when temperatures turned so high that the corals started losing their colour as the algae that gives them nutrients and colour is expelled by corals under heat stress. Concerns are that the reef is being pushed closer to a tipping point from which it won’t recover and urgent action is needed to limit global temperature rise to 1.5C.
EMEA
UK preps for NDC update – UK Energy Security and Net Zero Secretary Ed Miliband wrote a letter to the chair of the Climate Change Committee on Thursday asking for guidance on the country’s new Nationally Determined Contribution (NDC) to the Paris Agreement by the end of October at the latest. New NDCs are due by February and should set out climate action plans through 2035. The Committee on Climate Change acts an independent adviser to the UK government. The guidance would mirror the approach taken in 2020 to the UK’s 2030 NDC, Miliband said in the letter to Piers Forster. The government recognises that the new NDC needs to take into account the outcome of the Global Stocktake last year, the country’s goal for net zero emissions by 2050, delivery challenges, and the latest available science, among other factors, Miliband said. He also asked for the committee’s view on the impacts of including international aviation and shipping emissions in the NDC, and what the target level should be if it does.
Labour needs markets – Carbon markets are key to unlocking the UK Labour government’s climate ambitions, Tommy Ricketts, CEO of the ratings agency BeZero Carbon, argued in an op-ed in The Banker. UK climate action has deteriorated since the country enacted a goal for net zero emissions by 2050, leaving it up to the new administration to deliver “deeds, not words” and prove that climate action is not a financial burden. Carbon markets – on the cusp of a “ChatGPT moment” – can help to achieve this, by supporting jobs and growth and boosting the UK as a green finance leader, Ricketts argued. In the same way that ChatGPT recently catapulted from obscurity to global, everyday use, carbon markets are on the tip of huge growth, “with everyone knowing and understanding what they are and what they do”. Private investment through carbon markets can help the government fast-track its climate plans, he added, stressing that first-mover advantage is important and the US, China, and EU are already getting started.
ESG rating regulation – The UK government plans to propose a law next year to regulate raters of company environmental, social, and governance (ESG) performance, which is currently policed under a voluntary code of conduct, Reuters reported on Thursday. The move is part of Chancellor Rachel Reeves’ efforts to make the UK a world leader in sustainable finance, by improving transparency behind ESG ratings, the Treasury said.
Slovaks against carbon leakage – The European Commission has approved, under EU State aid rules, amendments to a Slovak scheme to partially compensate energy-intensive companies for the electricity levy financing support to renewable energy production. The scheme aims at mitigating the risk that, due to this levy, energy-intensive companies may relocate their activities to locations outside the EU with less ambitious climate policies. Beneficiaries will receive a levy reduction between 75% and 85%, depending on their risk exposure.
Calls for carbon removal proposals – The European Innovation Council (EIC) has opened a call for proposals for a new Pathfinder Challenge towards cement and concrete as a carbon sink. This challenge supports the development of breakthrough technologies for decarbonised or carbon-negative cement. The call for proposal on the soil mission work programme has also been published with two topics relevant to the EU’s Carbon Removal Certification Framework bill: high-spatial resolution monitoring approaches for carbon farming including the creation of national or regional marketplace and registries; and forest peat soils.
ASIA PACIFIC
We are official – The Malaysia Carbon Market Association (MCMA) was officially inaugurated today during the second edition of the Malaysia Carbon Market Forum 2024 held in Kuala Lumpur. The association’s launch was supported by nine founding members, including Bursa Malaysia, Cenergi SEA, Petronas, Sarawak Energy, and Yinson. In addition to its official launch, the MCMA received RM190,000 ($42,458) in seed funding from its founding members, which will support MCMA’s initiatives. MCMA will focus on initiatives such as promoting a dynamic voluntary carbon market, aiding in the creation of national carbon market policies, enhancing talent development, and fostering collaborations with both domestic and international carbon market partners. The association is also positioned to contribute to the ASEAN Common Carbon Framework (ACCF), aiming to advance carbon market projects across the region. (Business Today)
Addition – The committee overseeing Japan’s J-Credit programme has updated grid electricity emission factors in the monitoring and calculation rules for domestically issued carbon offsets, according to a notice released Thursday. The factor for marginal power sources during FY2022 has been set at 0.574 kg-CO2/kWh, based on the figures in the survey of power statistics.
Mangroves mapping – MS Swaminathan Research Foundation (MSSRF) and Microsoft in partnership will use geospatial technology and artificial intelligence to map mangroves along the coast of Tamil Nadu in India. The project called Geo-AI Blue Carbon Programme of MSSRF aims to transform the measurement of carbon sequestration in mangroves, sea grass, and salt marshes along the coast by leveraging advanced Geo-AI technologies, the New Indian Express reported. This will ensure providing data for policy decisions and better conservation and management.
AI for Laos – The government of Laos will use advanced artificial intelligence satellite technology to calculate carbon credits and prevent fraudulent carbon credit data. The technology is crucial for reducing fraud, cutting costs, and speeding up processes, especially for REDD+ projects, Lao News Agency reported.
I’ve got your back – South Korea’s IBK Securities has teamed up with MapSea, which specialises in marine data solutions, to help domestic shipping firms enter the European carbon market, it announced Thursday. The alliance aims to support small and medium-sized shipping companies’ participation in the EU ETS, with consulting services ranging from account opening to carbon hedging and renewable energy-related finance, according to the statement.
AMERICAS
Joint action: The First Nations-Canada Joint Committee on Climate Action (JCCA) released its sixth annual report on Thursday, outlining five priority commitments for 2024. These are: 1) advancing First Nations climate leadership; 2) continuing to develop First Nations-specific indicators and criteria to report on the implementation of climate-related federal funding programmes and outcomes; 3) strengthening intergenerational and intersectional dialogue; 4) updating and reviewing the JCCA mandate; and 5) enhancing transparency and broadening the reach of the JCCA. The report provides details on opportunities for First Nations to influence the design of federal climate change programmes and initiatives.
River CDR – Halifax-based project developer CarbonRun plans to trial its CO2 removal (CDR) process this summer in Pictou County, Nova Scotia, CBC reported Tuesday. The firm plans to add powdered limestone to rivers to enhance the river’s ability to absorb atmospheric CO2, in what CarbonRun claims to be the world’s first CDR project via enhancing river alkalinity. Its founders said that the efforts may also help salmon restoration efforts, the populations of which have suffered from years of acid rain. CarbonRun was among the inaugural purchase of CDR credits by Toronto innovation hub MaRS Discovery District, supported by various Canadian philanthropies.
Supreme Court call – Trade group US Chamber of Commerce is supporting calls for the Supreme Court to block the EPA’s power plant rule, E&E News reported Thursday. The rule requires existing coal-powered and new gas-powered plants to reduce their emissions by 90% by 2032, including via the application of CCS, if they do not shift electricity generation via retirement, limiting output, or conversion to other sources. The Supreme Court is currently assessing several applications to its emergency docket from industry, states, and electric cooperatives who look to temporarily pause the rule, the outlet added. The US Chamber of Commerce also said that the recent overturn of the Chevron doctrine by the Supreme Court bolsters the challenges against the EPA. In July, a panel of three judges from the US Court of Appeals for the District of Columbia Circuit ruled unanimously against a request from a litany of Republican state attorneys general and industry groups to halt the contested power plant standards, meaning the regulation will stay in effect for the time being.
Build the pumps – The US Department of Energy (DOE) announced the selection of four heat pump manufacturers to receive nearly $85 mln as part of efforts to scale domestic manufacturing of clean energy technologies. The recipients include $15.7 mln to Modine Manufacturing Company in Texas and Rhode Island, $39 mln to Daikin Comfort Technologies North America in Texas, $5 mln to Bitzer Scroll in New York, and $25 mln to AO Smith in Tennessee. The selections build on prior awards in Nov. 2023, which allocated $169 mln to nine projects.
EJ funding – The US Environmental Protection Agency (EPA) announced a total of $39 mln in environmental and climate justice grants to recipients in Texas and Louisiana on Thursday. Houston Health Department and the Black United Fund of Texas will receive $20 mln, while $19.9 mln will go to Dillard University and United Way of Southeast Louisiana. The funding is part of the Community Change Grants scheme that authorised nearly $2 bln in grants via the Inflation Reduction Act (IRA).
VOLUNTARY
Pension pick – UK pension scheme Nest has appointed JP Morgan’s timberland investment advisory company Campbell Global to establish a new evergreen timberland fund, reported ESG Today. Under the new agreement, Campbel Global will seek out opportunities for Nest in global markets including the US, Australia, New Zealand, and Chile, providing the pension scheme with a global portfolio of direct investments, focused on core traditional timberland. However, Nest highlighted a series of sustainability-related and financial benefits from timberland investment, including the promotion of sustainable forestry practices enabling ecosystem services such as carbon capture, water filtration, soil preservation, and habitat for wildlife, in addition to stable returns with a cash yield, a natural inflation hedge, and portfolio diversification. The UK pension scheme said Campbell Global’s approach towards responsible investing and intention to be a good environmental steward played a role in its selection of the company. JP Morgan acquired Campbell Global in 2021, aiming to provide direct access to the forestry sector and alignment with UN SDGs, while also enabling the firm to directly participate in transition to a low-carbon economy. The company expects to become an active participant in carbon offset markets as they develop, the outlet added.
SCIENCE & TECH
Record summer – July 2024 was both the second-warmest July and the second-warmest month globally in the data record, with an average surface air temperature of 16.91 C, some 0.68 C above the 1991-2020 average for July, and only 0.04C lower than the previous high set in July 2023. According to the EU’s Copernicus Climate Change Service, the whole Earth experienced its two hottest days ever recorded on July 22 and 23.
Battery system leaders – Tesla has overtaken Sungrow as the leading producer in the battery energy storage system (BESS) integrator market with a 15% market share in 2023, according to Wood Mackenzie’s ‘Global battery energy storage system integrator ranking 2024’ report. The global BESS integrator market is becoming less concentrated, with the market share of the global top five BESS integrators shrinking to 47% in 2023 from 62% in 2022, with a 24% year-on-year (YoY) decline. This is largely due to multiple China-based companies entering the market, with six of the global top 10 vendors China-based. Chinese vendors largely exclusively supply their domestic market and also installed the most BESS globally last year. In North America, Tesla remained a market leader in 2023, alongside Sungrow and Fluence. The EV maker’s market share in the region surged by 60% YoY for BESS.
AND FINALLY…
Newer, dirtier planes – Modern airplanes that fly at higher altitudes could be contributing even more to global warming, because they create longer-lasting vapour trails, the New Scientist reported, citing research from Imperial College London. Private jets and modern more fuel-efficient jets fly higher than other passenger aircrafts. In some conditions, soot particles emitted by jet engines can seed the formation of ice particles, creating contrails that have an effect on warming. Contrails are responsible for as much as half of the warming effect of aviation – rather than CO2, the article said. How long the contrails last can determine how much they contribute to warming. Long-haul flights tend to fly at higher altitudes, but they have been excluded from the EU’s scheme to reduce non-CO2 emissions, the NGO Transport and Environment noted.
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