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TOP STORY
BeZero evaluates first DAC carbon project, assigns highest-ever rating
Carbon ratings agency BeZero Carbon issued its highest-ever rating for the first publicly evaluated direct air capture with carbon storage (DACCS) project on Wednesday.
EMEA
Brussels approves Dutch plan to pay livestock farmers to close down
The European Commission has approved a Dutch plan to provide €700 million of state aid to compensate farmers for voluntarily closing their livestock farming sites to help cut nitrogen emissions, it announced on Wednesday.
Poland launches €5 bln plan to fund offshore wind farms
Poland is starting a nearly €5 billion program funded by the European Union’s recovery funds, to offer loans to developers of offshore wind farms in the Baltic Sea, the state assets ministry and national development bank BGK announced on Tuesday.
Ukraine green lights $20 bln plan to boost renewable energy production by 2030
Ukraine will need an estimated $20 billion of investments to advance its renewable energy sector under a plan to increase its share in the country’s energy mix to 27% by 2030, according to a government announcement this week.
NGOs plot legal challenge to new gas drilling permit in German North Sea
Several NGOs are plotting legal action against a new drilling permit for gas extraction off the coast of Germany, they announced Wednesday.
Euro Markets: EUAs post modest gain in light trade as funds cut shorts, while gas market edges lower
European carbon prices shrugged off weakness in natural gas to end Wednesday moderately higher, targeting a key resistance level amid a re-emergence of buying interest after Tuesday’s decline and as weekly position data showed investment funds had cut their bearish bets to the lowest in two months.
AMERICAS
ARB offset issuance YTD trails 2023 by 30%
California regulator ARB has doubled offset issuance over the latest three-week period compared to its prior biweekly distribution, yet is 30% behind year-to-date (YtD) levels at the same time in 2023.
Oregon details final considerations for policy changes to its clean fuels programme
Oregon’s Clean Fuels Program (OCFP) revisions will include an insurance mechanism for carbon capture and sequestration (CCS) projects, validation mandates, and changes to third party verification provisions, in addition to carbon intensity (CI) model updates, the regulator confirmed Wednesday.
Mexico’s Queretaro, environmental markets platform launch national carbon offsetting registry
The Mexican state of Queretaro and a Mexico City-based environmental markets platform launched Wednesday a national carbon credit registry tailored to local conditions, seeking to help facilitate the development of the nation’s carbon market.
ASIA PACIFIC
Japanese power company expands carbon credit deal with trading house
One of Japan’s largest power retailers and generators has signed a long-term offtake agreement with a Singapore-based trading house for Australian carbon credits.
Major Korean automaker enters domestic voluntary carbon market
The automotive finance arm of a major carmaker in South Korea has created a business model that can generate carbon credits for electric vehicles by leveraging the parent group’s resources.
Thai consortium launches voluntary carbon trading platform for events
Five organisations in Thailand have signed a Memorandum of Understanding (MoU) to launch a carbon trading platform for small- and medium enterprises (SMEs) in order to hold sustainable events, they announced Wednesday.
India should include power sector in ETS, report says
India should include the power sector in its planned emissions trading scheme to make it more effective, as exempting it would leave 40% of national greenhouse gas emissions unregulated, according to a report released this week.
SK Market: August auction undersubscribed ahead of compliance deadline, price growth potential seen limited
South Korea’s latest monthly CO2 permit auction was undersubscribed even with the annual compliance deadline rapidly approaching, with analysts expecting the permit price to remain at relatively low levels due to a lasting oversupply in the market.
Korean financial firm to provide deposit services for upcoming ETS consignment trading platform
A Korean financial institution is planning to provide deposit services for a planned consignment carbon trading platform that will likely be added to the country’s national emissions trading scheme next year, local media reported.
Australia’s biggest bank puts emitters on notice: No transition plan, no money
One of Australia’s biggest banks will stop funding clients that don’t have transition plans that align with the goals of the Paris Agreement, it said Wednesday.
Gas development will drive emissions rise in Australia’s Top End under all scenarios, says govt report
A government report, obtained by a reporter from Australia’s national broadcaster, found the Northern Territory government believes the gas industry will drive up its emissions by 100% even under a conservative scenario.
UAE asset management firm forms alliance to pursue JCM rice farming project in Indonesia
An Abu Dhabi-based asset management firm has teamed up with two international partners to promote a sustainable rice farming method and generate carbon credits deemed eligible under Japan’s bilateral framework in Indonesia, it announced Wednesday.
INTERNATIONAL
Rate of global warming forecast to drop under current policy -report
The rate of global warming is expected to decline over coming years under current climate policies, though the downward trend could be greater if both national climate plans and long-term net zero targets are met, according to new analysis.
Nobel laureates denounce dropping of ‘fossil fuels’ from UN draft pact
A group of 77 former world leaders and Nobel laureates is calling out governments for dropping any mention of fossil fuels and a just transition from the ‘Pact for the Future’ in negotiation ahead of an upcoming UN summit in New York.
Banks failing to meet their own green commitments, finds analysis
Major banks are far off track in meeting their climate targets and pledges are often less ambitious than they seem at face value, according to analysis published Wednesday.
Climate standards need to encompass company’s broader influence on climate action -report
Current climate standards don’t go far enough to incentivise the innovations needed to deliver on net zero, and should be expanded to include a company’s broader influence on the planet, according to a new paper.
VOLUNTARY
Green gold: Russian mining company issued first voluntary carbon credits
A Russian gold mining company has been issued almost 2.2 million voluntary credits by the country’s national carbon registry for emissions reductions linked to cleaner energy usage.
Verra implements new project fee for REDD voluntary carbon activities
Voluntary carbon standard Verra will implement a new fee for projects under its consolidated VM0048 REDD methodology, it announced Wednesday.
Voluntary carbon removals standard consults on mineralisation storage modules
A voluntary carbon standard focused on durable carbon removals is consulting on two new modules concerning CO2 storage via mineralisation.
UK big business to increase carbon credit spend tenfold, finds survey
Big business in the UK plans to buy much higher volumes of carbon credits than current levels to meet sustainability targets, finds a new survey.
SHIPPING
Study correlates IMO regulations’ reduced sulphur emissions to inadvertently accelerate global warming
In regulating sulphur emissions from ships, the International Maritime Organization’s (IMO) 2020 regulations may have inadvertently contributed to global warming, according to research released this week.
BIODIVERSITY (FREE TO READ)
Biodiversity credits to receive significant portion of private finance, expert says
A substantial share of private finance will flow towards biodiversity credits as investors are confident demand for them will surge in coming years, a think tank researcher has said.
Academics launch independent standard for high-integrity biodiversity, carbon credits
A group of academics have launched a community-focused standard for high-integrity carbon and biodiversity credits to address the growing demand for reliable markets, the team leader has told Carbon Pulse.
Japan mulls biodiversity net gain scheme to offset river degradation
The Japanese government is considering establishing a biodiversity offsetting scheme similar to the biodiversity net gain (BNG) law in England to compensate for habitat degradation driven by flood control, chief researchers at the infrastructure ministry have told Carbon Pulse.
AI-powered drone laser data aims to transform biodiversity measurements
Cambridge researchers are leveraging the capabilities of drones, lasers, and AI to try to transform the speed and accuracy of assessing biodiversity and carbon in forests.
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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
Dirty tech – Big tech firms including Amazon, Meta, and Google have funded and lobbied the Greenhouse Gas Protocol, the carbon accounting oversight body, and financed research that helps back up their positions, according to documents seen by the FT. In a lengthy feature, the newspaper considers how these huge multinationals are also poised to become some of the biggest energy users of the future as they race to develop power-hungry artificial intelligence, potentially threatening their commitments to net zero. The FT’s analysis also argues that the emissions totals disclosed in annual sustainability reports, are not always reflective of actual GHG output.
Holding accountable – A growing number of efforts are trying to ensure that governments and companies are held accountable for their climate pledges, with some 2,666 climate-litigation cases filed worldwide by the end of last year, according to a report by the Grantham Research Institute on Climate Change and the Environment. Most claimants are individuals, young and old, as well as NGOs. However, despite some landmark judgements, most claimants struggle to get a positive result. This is where the entry of the world’s highest court could be a game changer. In the next few months, the International Court of Justice (ICJ) will begin hearing evidence on first, what are countries’ obligations in international law to protect the climate system from anthropogenic GHG emissions, and second, what should the legal consequences be for states when their actions — or failure to act — cause harm? This could be one of the most consequential developments in climate policy since the Paris Agreement, argues this article in Nature.
Wildfires – The ‘State of Wildfires 2023-24 report, published Wednesday in academic journal Earth System Science Data, found that wildfire-related carbon emissions from Mar. 2023-Feb. 2024 were 16% above average – equal to 8.6 bln tCO2.The most significant contributor were fires in Canadian boreal forests, as well as fires in Greece and western Amazonia. Drivers of the fires in Canada and Greece include high fire weather and an abundance of dry fuels. The probability of extreme fire seasons of significant magnitude has increased due to anthropogenic climate change, the authors said. The study, led by researchers at the University of East Anglia alongside other UK and EU government offices, is the first in an annual effort to catalogue extreme wildfire events, explain occurrence, and predict future risks.
EMEA
Pipeline attack breakthrough – Germany’s chief prosecutor has issued an arrest warrant for a Ukrainian man suspected of blowing up the Nord Stream gas pipelines in the Baltic Sea nearly two years ago, marking a breakthrough in the long-running investigation into an act of sabotage that drastically reduced Moscow’s ability to use its energy exports as leverage over Europe. Russia had already halted supplies through Nord Stream 1, its main conduit for gas into Germany, before the blasts occurred, while Nord Stream 2 never started operations after Berlin cancelled its approval process in Feb. 2022. Russia and the West long accused each other of being behind the explosion. However, the alleged attackers are said to have rented a German sailing yacht and to have attached explosives to the pipelines by way of diving, while police and prosecutors had found no evidence that the Ukrainian military or intelligence services were involved in the attacks. (FT)
Coping mechanism – The UK has launched a new Energy Crisis Commission involving representatives from Energy UK, the Confederation of British Industry (CBI), Citizens Advice, and National Energy Action (NEA), which is tasked with developing proposals to help ensure the country is better equipped to cope with future energy price shocks. The body will review the impacts of the gas crisis triggered by Russia’s invasion of Ukraine on homes and businesses, before setting out recommendations designed to improve the UK’s energy security. The Commission will launch a call for evidence set to close at midnight on Aug. 30 and will publish its findings in the autumn. Despite a recent fall in energy prices, bills remain 15% higher than before the crisis, and up to 50% higher than pre-Covid levels. Analysts have warned energy bills are set to rise again in the autumn, once again driven by increases in wholesale gas prices. (BusinessGreen)
Carbon capture funding – Recycling and waste recovery firm Suez is moving ahead with carbon capture projects at Teesside industrial hub, and is preparing to apply for funding from the UK government to support the speculative investment it has already made. It has not disclosed how much it has already invested, nor the amount it is seeking from the state. If funded, the projects would form part of a new East Coast Cluster of low-carbon industrial facilities and carbon capture projects. Suez will apply to the Industrial Carbon Capture Track-1 Expansion fund, overseen by the Department for Energy Security and Net-Zero (DESNZ), later this year, at which point the funding it seeks will become clear. The UK ETS will expand to include emissions from waste incineration and energy generation from 2028, with monitoring, reporting, and verification to start from 2026.
Cable boost – EON boosted investments more than 20% in H1 2024 as it expands a huge network of cables that’s helping to drive the energy transition, Bloomberg reports. The German utility and one of Europe’s largest distribution grid operators spent €2.9 bln on the energy shift in the first half, and in March, EON announced total investments of about €42 bln through 2028, with the bulk of that dedicated to German projects and network/infrastructure improvements. However, EON has warned that the return on grid spending in German lags significantly behind other countries with comparable investment risk, calling for a long-term framework that provides sufficient investment returns.
More results – RWE also released higher-than-expected profits for the first half of the year, but did not raise its outlook for the full-year, causing shares in Germany’s largest power producer to slip, Reuters reports. The positive financial results were mainly driven by higher-than-expected profits at RWE’s flexible generation division, which comprises its gas-fired power plants. The utility, historically the largest emitter in the EU ETS, confirmed a 19% YoY drop in EU ETS-covered fossil power output that had earlier been reported in preliminary H1 generation data.
Wind turbine surge – Vestas Wind Systems reported a surge in wind turbine orders two days after issuing a profit warning related to a different part of its business, in a bid to reassure investors, Bloomberg reports. The company sold turbines equivalent to 3.6 GW of capacity in Q2, a 54% increase compared to a year earlier, according to a statement released Tuesday. This follows a warning issued Aug. 12 that tightened guidance on its full-year revenue, following a surprise loss recorded in the business unit providing services to turbines sold. Vestas said higher costs in the services business were due to salaries, “indirect effects from upgrade and repair campaigns”, and operational inefficiencies. That unit led to a trimming of full-year guidance, with the full year earnings margin now expected at 4% to 5%, down from a range of 4% to 6%. Meanwhile, its turbine business appears to be strengthening its balance sheet while the service business stumbles. The average selling price of a Vestas turbine is up more than 50% compared to a year ago.
ASIA PACIFIC
Buy more coal – National miner Coal India limited (CIL) has removed all restrictions on the amount of coal that power plants can procure, allowing them to acquire as much coal as they need, Business Standard reported. Earlier, CIL supplied coal based on the annual contracted quantity (ACQ) agreed upon with each power plant. The miner’s board approved the removal of supply caps for ease of doing business and to avoid duplicity of work, a statement by CIL said. This simplification is expected to benefit power plants and boost CIL’s supplies, it added. Currently, coal-generated electricity satisfies 75% of the country’s demand.
AMERICAS
How much to axe – Although Canada’s carbon tax on fossil fuels remains unpopular in the public eye – despite a claim that more households benefit due to the associated rebate – the Conservative opposition’s call to “axe the tax” with the associated change in government policy could create “a degree of uncertainty that every federal and provincial election cycle can slow investment and worsen the broader business environment, Scotiabank said in research published Tuesday. It is unclear whether the federal carbon price would be fully or partially scrapped, and what policy measures to reduce Canadian emissions would subsequently follow, the bank said. For example, keeping federal carbon pricing on industrial emitters but removing the tax on fossil fuels would likely lead to worse fiscal outcomes for most households, as industrials would still pass costs through and with smaller rebate, the bank claimed. Canada would also be susceptible to other countries’ border adjustment schemes – notably, from countries that make up export destinations for 80% of Canadian trade are either implementing the scheme or considering its implementation.
Lots to lobby – Fossil fuel companies as well as their industry associations lobbied the Canadian government an average of five times per working day in 2023, the National Observer reported Tuesday. The top lobbied departments were Energy and Natural Resources Canada (NRCAN), Environment and Climate Change Canada (ECCC), and Finance Canada, with 313, 253, and 118 meetings respectively, according to analysis from non-profit Environmental Defence. The top lobbyist was oil sands industry group Pathways Alliance, which recorded 105 meetings. The Canadian oil and gas industry has strong interest in persuading governments not to enact regulations that limit the production of fossil fuels and potentially reduce profits, said Environmental Defence, adding that the three most-lobbied ministries developed regulations including the oil and gas emissions cap, clean electricity regulations, methane regulations, and the Canadian Sustainable Jobs Act.
VOLUNTARY
USDA advisory – The US Department of Agriculture (USDA) announced its intent to establish the Greenhouse Gas Technical Assistance Provider and Third Party Verifier Program Advisory Council under the Growing Climate Solutions Act and is seeking nominations for Council membership. The initiative was announced in Feb. 2024 and aims to help US farmers, ranchers, and forest landowners engage in the voluntary carbon market by establishing high-integrity protocols for carbon credit generation. Council activities would include periodic review and recommendations regarding eligible protocols, qualifications for entities that provide technical assistance, and activities for which technical assistance providers and third-party verifiers may register to provide services under the programme. Further, the council would advise the Secretary of Agriculture on current methods used in voluntary carbon markets to quantify and verify emissions reductions, ways to reduce the barriers to market entry, and strengthen markets. In total 32 members will be appointed to the Council, public, private, non-profit, civil society and academic groups. About 51% of the Council will be comprised of farmers, ranchers, and private forest landowners, and will also include representatives of beginning, underserved, limited resource, and veteran farmers. Members will serve two-year terms, and will meet at least once a year. Further information can be found in the Federal Register and interested parties may submit comments online through Oct. 15, while nomination packages must be postmarked on or before that date.
SCIENCE & TECH
A losing battle? – Blue hydrogen (made using steam methane reforming with CO2 capture) looks to be taking the lead over green hydrogen (made using renewable electricity and electrolysis) as the cost of producing green H2 fails to compete with fossil fuel-made alternatives and oil majors pump investment into blue H2 projects. About half of blue hydrogen supply by 2030 has been approved to start construction, compared to 15% of the green projects. Challenges facing the scale up of green H2 include: trade tensions that make developers reluctant to buy Chinese-made electrolysers, high interest rates that push up financing costs, and wavering official support for clean power. Political will is needed to give green H2 the kick it needs, such as mandating that consumers use it, otherwise Big Oil will move in and clean up with the blue variety, writes Bloomberg.
Climate-induced scorchers – The scorching weather across the Mediterranean this week was made up to five times more likely, or more, by human-induced climate change, according to analysis by Climate Central. The temperature anomalies across the Med were expected to be positive in the five days up to Thursday. Much of Italy, France, Greece, and Albania expected to experience between 3C and 6C above average. Croatia, Montenegro, Bosnia and Herzegovina, Serbia, Hungary, and Austria were expecting between 6C and 10C above average. Meanwhile, France, Italy, much of Greece, western Turkey, Syria, Israel, Palestine, Egypt, eastern Libya, and much of Tunisia were expected to reach the most elevated temperature level in Climate Central’s Global Climate Shift Index – a level of 5 – on each of the five days.
AND FINALLY…
Don’t touch my Vespa – Italian far-right minister Matteo Salvini has vowed to save the iconic Italian scooter from the “eco-craziness” of the European Green Deal, the Times reported. Salvini, Italy’s vice prime minister and transport minister from the nationalist League party, has submitted a draft law that would recognise Piaggio’s Vespa as an example of “national cultural heritage”, thereby exempting it from future traffic restrictions imposed by local, national, or European lawmakers. The concern is that the EU’s plan to ban the sale of new CO2-emitting vehicles from 2035, under the Green Deal, could sound a death knell for the oil and petrol-fuelled scooters that are synonymous with classic Italian style. Vespas are very polluting, with two-stroke engines that emit as much as 30-50 stroke scooters, according to the Times. The EU policy does not mention motorcycles, but aficionados worry they will be next on the hit list.
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