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TOP STORY
Brazil’s Amazonas prosecutor may pursue legal means if REDD+ suspension recommendation not adhered to
The Federal Public Prosecutor’s Office (MPF) in Amazonas clarified Thursday that the suspension recommendation targeting select REDD+ activities in the Brazilian state was an “extrajudicial instrument”, with possible legal ramifications if their counsel was not followed, and provided more details on the relevant compliance timeline and assessment factors.
AMERICAS
New York ETS draft rules expected later this year -state officials
New York officials plan to release draft rules for the state’s cap-and-invest programme later this year, a webinar heard Thursday.
WCI Markets: CCAs slip amid dampened auction expectations
California Carbon Allowance (CCA) prices moved lower this week in light of the Q3 auction, as traders discussed whether recent feedback submitted to California regulator ARB would be incorporated into the cap-and-trade programme’s formal rulemaking.
Eight US states back Ohio’s SCOTUS appeal against California’s clean vehicle mandate authority
Eight states last week filed a joint brief at the Supreme Court of the US (SCOTUS) in support of Ohio’s ongoing battle against the Environmental Protection Agency’s (EPA) authorisation of California’s regulations to mandate increasing sales of zero emission vehicles (ZEVs).
Federal court dismisses SAF greenwashing lawsuit against United Airlines
A federal court granted United Airlines’ (UA) motion to dismiss a class action lawsuit alleging the airline had misrepresented its green claims from the use of sustainable aviation fuel (SAF), according to court documents released Wednesday.
Canada Growth Fund invests $100 mln in carbon capture company
The Canada Growth Fund (CGF) has allocated $100 mln towards a British Columbia-based carbon capture company, the federal government announced Thursday.
Dominican Republic plans ETS with support from UN, consultancy
The Dominican Republic (DR) has commissioned a consultancy to design a pilot emissions trading system (ETS), Carbon Pulse learned at the Mexican Carbon Forum in Guanajuato this week.
FEATURE: Mexican carbon market stakeholders pin high hopes on new president
Mexican carbon market stakeholders are welcoming president-elect Claudia Sheinbaum as a fresh face with the potential to prop up green finance, Carbon Pulse heard this week in Guanajuato at the Mexico Carbon Forum, though subnational governments are still seen as a major driver of the country’s climate action.
Mexican carbon market needs simple regulations to hit sweet spot -stock exchange
Federal regulations are needed in Mexico to incentivise carbon credit use among businesses and foster greater voluntary market (VCM) transparency, according to a senior stock exchange official speaking at the Mexico Carbon Forum in Guanajuato this week.
Mexico’s Hidalgo exploring options for future state carbon tax -official
The Mexican state of Hidalgo is considering implementing a state carbon tax, which is expected to allow the use of offsets for compliance purposes, according to an official from the state’s environmental ministry.
Bolivian constitutional court legalises carbon trading, review requested -media
Bolivia’s top court has struck down a provision of national legislation that previously banned carbon trading in the country, prompting a request for review by the vice presidency.
Regional cooperation can facilitate Article 6 development in Latin America -panellists
Regional trade bloc agreements could help facilitate the development of Article 6 capacities and trading in Latin America, conference attendees heard Wednesday.
ASIA PACIFIC
Asian CBAMs inevitable, but regional governments should collaborate, experts say
Asian equivalents to the EU’s Carbon Border Adjustment Mechanism (CBAM) will inevitably emerge as a way to ensure cash stays in their respective countries that would otherwise go to Europe, experts told a conference Thursday.
Singapore, Philippines to sign MoU on carbon credits
Singapore and the Philippines are due to sign a Memorandum of Understanding on carbon credits Thursday night, reinforcing their Article 6.2 collaboration.
China renewable energy expansion continues to outpace thermal generation
China saw strong annual growth in hydro and solar power production in July, while domestic thermal power generation continued to fall amid underwhelming economic recovery, according to government data.
Australian carbon watchdog puts HIR under spotlight
Australia’s Clean Energy Regulator (CER), which oversees Australia’s carbon market, has made the process around gateway checks for human-induced regeneration projects a key priority for the ACCU Scheme over the next year.
EMEA
UK enhanced rock weathering may come with environmental and health trade-offs -report
The UK could reasonably expect to remove around 6 million tonnes a year of CO2 using enhanced rock weathering, although it would require an expansion of rock crushing operations and could pose new risks around emissions and environmental and public health, according to a new report.
Euro Markets: EUAs reverse early losses as stronger energy markets overcome weight of selling
European carbon prices recovered early losses on Thursday, enjoying the slipstream from rising energy markets later in the day, as trading activity picked up again after Wednesday’s lull despite a public holiday across much of the region.
VOLUNTARY
INTERVIEW: Puro endorsed by buyers’ club, sees growth potential in Americas
A coalition of durable carbon removals (CDR) buyers has fully endorsed the Puro.earth standard, making it one of only two bodies to achieve this distinction, a company representative told Carbon Pulse on the sidelines of the Mexico Carbon Forum on Wednesday, as Puro addresses a growing market in North and South America.
Integrity body faces credibility test if corporates continue to retire non-CCP voluntary carbon credits, warn analysts
Retirement patterns of voluntary carbon credits this quarter will test whether corporate buyers are paying heed to the Integrity Council for the Voluntary Carbon Market’s (ICVCM) Core Carbon Principle (CCP) stamp of integrity, according to analysts.
INTERVIEW: Voluntary carbon credits can step in while costs of green tech remain too high
The Science Based Targets initiative (SBTi) should recognise the value of voluntary carbon credits as a stopgap measure for corproate investment while they wait for the cost of some internal emissions reduction levers, such as electrification, to decline, said an environmental consultancy.
“Kill your darlings”: Voluntary carbon participants lament state of market, but integrity initiatives provide some solace
Sentiment in the voluntary carbon market (VCM) is weak with buyers staying away, scared off by the multiple scandals that have plagued the sector, but participants are hopeful the integrity initiatives underway will lead to better times, despite demand-side challenges remaining.
Generative AI can bring climate benefits -report
Generative AI models used to create novel materials or assist people in various tasks can advance climate and sustainability goals, according to a report by a venture capital house on Thursday.
Two Canadian firms study voluntary carbon credit potential from graphite separation
Two Canadian companies are collaborating to determine whether a proprietary graphite processing method could generate voluntary carbon credits.
New Zealand verifier wins backing for forestry certification standard
A New Zealand-based verifier on Thursday announced its verification standard for long-term forestry CO2 capture and storage had been validated by a global certification firm, the first time such a standard will be made available for the NZ voluntary carbon market.
Gold Standard adds new activity module to its soil organic carbon methodology
Gold Standard has added a new “Managed Pasture Activity Module” to its Soil Organic Carbon methodology, the carbon offset standard announced on Thursday.
INTERNATIONAL
ANALYSIS: Global South carbon markets need an explosion of Southern demand
Heightened demand from carbon credit buyers located in the Global South will be key to retaining climate finance in-country and pursuing sustainable development in emerging economies via the voluntary market (VCM), instead of relying on foreign investors from the North, according to speakers at the Mexico Carbon Forum in Guanajuato this week.
‘Hybrid’ steel plants could ease switch to green steel -analyst
‘Hybrid’ steel plants that blend hydrogen and natural gas are a ‘promising solution’ that could help ease the shift to green steel, according to an analyst at a leading climate think tank.
SHIPPING
Maritime compliance company warns of rising FuelEU penalties, gives early price estimates for pooling
A maritime emissions compliance and data solutions provider has released early price estimates for FuelEU’s pooling system in a press feature.
BIODIVERSITY (FREE TO READ)
Investors announce Australian regenerative agriculture partnership
Two investors on Wednesday announced an Australian partnership focused on ecosystem services and regenerative agriculture.
Australia’s New South Wales introduces biodiversity offsets bill
The New South Wales government in Australia introduced a bill to reform the biodiversity offsets scheme to its Parliament on Thursday, requiring developers to take measures to prioritise avoiding environmental harm.
Biodiversity Pulse: Thursday August 15, 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
Renewable fuels shift – The landscape for producing renewable fuels is shifting, with many projects in more established markets recently cancelled and replaced by plans for a more diverse set of locations and technologies, according to BloombergNEF. From Sep. 2023 to July 2024 — almost 1 bln gallons per year of nameplate capacity have been switched to ‘Paused/Abandoned’ status due to issues like construction costs by the likes of BP and Shell. Yet new additions over the same period come to almost 2 bln gallons per year, with power-to-liquids projects accounting for a large part of that. Power-to-liquids produce ‘”e-fuels” from green hydrogen and CO2 capture and have the advantage of not relying on biogenic feedstock, which can be supply-constrained. These projects are also more focused on making sustainable aviation fuel (SAF) than renewable diesel.
EMEA
Offshore wind troubles – Orsted booked an impairment of more than $500 mln related to an offshore wind farm in the US and a canceled green hydrogen plant in Sweden, in signs that the CEO’s turnaround plans still have some way to go before bearing fruit. In total, the Danish wind developer took a hit of 3.9 bln Danish kroner in Q2, including from delays at the Revolution Wind project off the US East Coast. The nascent US offshore wind market is facing troubling times with developers struggling to predict all costs. Orsted had to cancel two major projects in the US last year after delays and supply chain issues added unmanageable costs. On a positive note however, Orsted confirmed it’s on track for a full-year profit in the range of 23 bln kroner to 26 bln kroner, signalling that it’s core business is strong enough to weather such negative surprises. (Bloomberg)
Miliband divides – Six weeks on from the UK Labour Party’s resounding win in the general election, no one in Kier Starmer’s Cabinet has moved as quickly as Ed Miliband, reports Politico. The new energy secretary has moved fast to introduce legislation creating publicly owned GB Energy, lifted a de fact ban on new onshore wind in England, authorised three large solar farms to be built, and installed a ”mission control” unit in his department to decarbonise the country’s power system by 2030. Yet Miliband has also attracted opposition, being labelled as Conservative MPs’ top tip for first exit from Starmer’s Cabinet. He is deeply unpopular among Conservative and Reform backers, while his political opponents view his strong commitment to climate action as a potential political weakness. Labour figures are united behind the Miliband green agenda for now, but fault lines may widen around the impact of the oil and gas phase-out on jobs and the big financing required for his clean power plans.
Waste not – The North London Waste Authority has opposed the inclusion of waste incineration plants in an expansion of the UK ETS, saying it intervenes at the wrong end of the sector, in a submission it published on Thursday to a government consultation that closed in early August. The authority, which covers seven local governments in London, said inclusion in the ETS was the wrong mechanism to encourage the waste sector’s decarbonisation, because local authorities have statutory duties to dispose of household waste and little influence over what goes into it. This, it said, leaves them with few routes to decarbonise. Instead, the authority said, the government should focus its incentives on the producer end of the sector, in line with the polluter pays principle. The UK plans to gradually apply the ETS to waste incineration from 2026.
ASIA PACIFIC
Chipping in – The Asian Infrastructure Investment Bank (AIIB) and energy firm Engie have committed up to $88 mln to build a solar power project in India. Together with the Asian Development Bank (ADB) they will co-finance the development, construction, operation, and maintenance of a 400-MW solar PV plant in Gujarat, they announced.
A bit more time – Taiwan’s long-awaited carbon fee rate will be determined before the end of this year, Focus Taiwan reported, citing remarks by Minister of Environment Peng Chi-ming. The fifth meeting of the carbon fee rate review committee is set to take place in early September. After that, one more meeting is needed for the final decision, the minister said. The government had originally said the carbon fee rate would be set no later than the first quarter of 2024, though that date has been repeatedly pushed back.
Not good enough – Delayed renewable energy deployment in South Korea could hinder its rapidly growing semiconductor and artificial intelligence (AI) industries, given the increased global focus on environmental factors in the international tech supply chain, according to a report by the Institute for Energy Economics & Financial Analysis. Semiconductor manufacturing powered by fossil fuels could jeopardise the RE100 goals and market competitiveness of Korean suppliers, especially when the US customers prioritize manufacturers who use renewable energy, the report said. In 2023, the country’s renewable energy made up only 9.64% of its power generation mix, lagging far behind the world average (30.25%). South Korea trails other countries by at least 15 years in reaching the 30% threshold for renewable electricity generation, according to the report.
AMERICAS
Plugging orphaned wells – The US Department of Interior on Wednesday announced $775 mln in grants for 21 states to clean up orphaned oil and gas wells and surrounding sites. This funding is part of the Bipartisan Infrastructure Law, which has provided $4.7 bln to plug orphaned wells. So far, the Interior Department has awarded $565 mln in initial grants to 25 states, $444 mln in Phase 1 formula grants to 18 states, and a $2 mln performance grant to West Virginia. The Phase 2 Formula Grant guidance released Wednesday commences the next application window for states to apply for the estimated $775 mln in formula grant funds. The 21 eligible states can apply for a Phase 2 formula grant until Dec. 13, 2024. Additional phases of funding will be available in the future.
Request for evidence – The US House Committee on Science, Space, and Technology is continuing its oversight of the Department of Energy’s (DOE) role in President Joe Biden Administration’s pause on pending approvals of LNG exports, the committee said in a letter to DOE Secretary Jennifer Granholm. The group requested additional transparency from the DOE on its process to update analyses of the economic and environmental impacts of LNG exports. The letter cited a recent report from research centre Breakthrough Institute, which the committee said confirmed its concerns regarding the lack of scientific jurisdiction for the halt. The committee added that research from Cornell University professor Robert Howarth has led the public to perceive Howarth’s claim that domestic natural gas is “worse than coal” as the necessary justification for drastic and immediate action pausing LNG export approvals. But Breakthrough Institute’s report showed that Howarth used “incontrovertibly flawed methodology”, said the committee. It has requested a response from the DOE, including documentation, communications, and scientific evidence, by Aug. 27.
Chevron settlement – The Richmond City Council voted unanimously to approve a $550 mln settlement from oil major Chevron in exchange for dropping an initiative that would tax the company $1 per barrel of oil processed at the city’s refinery, the third-largest in the state, E&E reported Thursday. Council members said the deal secured a short-term win that would allow them to get money into the community sooner. Dubbed the Polluters Pay Initiative, the council in June had unanimously voted to place the initiative on the ballot at the general municipal election on Nov. 5. If passed, the additional fees imposed on Chevron’s refinery – one of the largest in the Golden State – would have brought between $60-90 mln into Richmond every year.
VOLUNTARY
Oil & Gas Standard – The Science Based Targets initiative has entered the drafting phase of its SBTi Oil & Gas Standard, according to a LinkedIn announcement. The Expert Advisory Group has gathered more insights into GHG accounting for oil and gas, bringing the organisation closer to completing a draft for public consultation, it said. So far, SBTi has completed extensive research, whereby the technical department have gathered input from stakeholders, conducted interviews, and reviewed scientific literature, to ensure the Oil & Gas Standard is built on a robust foundation, it said. The standard draft will be released for public consultation once complete.
Miles offset – The Green Insurer has now allowed customers to offset over 100 tonnes of CO2, it announced in a press release today. The broker, which offers green car insurance policies to environmentally conscious drivers, offsets every mile driven by its policyholders using a range of quality-assessed carbon credit projects. CO2 emissions are calculated using the car model’s details of CO2 per mile, number of miles driven, and how the car is driven (in terms of fuel efficiency).
AND FINALLY…
Just stop the imprisonment – Five Just Stop Oil protesters are appealing their record-breaking prison sentences, after being jailed for plotting a disruption of the UK’s M25 motorway, the Independent reported. Roger Hallam, co-founder of the campaign groups Just Stop Oil and Extinction Rebellion, was sentenced to five years in prison for his role in what the judge called a “sophisticated” plan to block the M25. The other four – Daniel Shaw, Louise Lancaster, Lucia Whittaker De Abreu, and Cressida Gethin – were sentenced to four years. These are believed to be the longest sentences ever given in the UK for non-violent protest, the Independent said. The plan was partially successful, with more than 45 protesters climbing or attempting to climb up gantries on the motorway between Nov. 7-10, 2022, according to the judge’s sentencing. This caused delays calculated to total 50,856 hours and cost £769,966, it said.
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