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TOP STORY
India open to bring coal into compliance scheme in time
India has left coal-fired power generation out of its compliance carbon market from the outset, but might add the big-emitting sector to the scheme later, a government official said Thursday.
EMEA
Suriname offers up 1.5 mln sovereign rainforest carbon credits to corporates
Suriname has offered up 1.5 million sovereign V21 carbon credits, authorised for international trade under Article 6, according to a release Friday.
Euro Markets: EUAs drift lower amid selling pressure as weaker gas market provides little support
European carbon weakened for much of Thursday’s session as sellers appeared to hold the balance of power, though the benchmark contract moved in a relatively narrow trading range as much of the recent gas-fuelled volatility appeared to be absent.
AMERICAS
WCI Markets: CCAs bounce after Q3 auction clear shocks to the downside
California Carbon Allowance (CCA) prices fell to new year-to-date lows following the release of Q3 auction results on Wednesday, recovering through Thursday amidst significant turnover in the secondary market.
California May diesel, gasoline sales pick up as retail prices soften
California diesel and gasoline consumption in May increased month-on-month as retail prices receded from year-to-date highs in April, state data published this week showed.
Democratic state AGs defend fossil fuel lawsuits from Republican challenge
A group of attorneys general (AGs) from Democrat-led states filed a brief Wednesday in the US Supreme Court (SCOTUS) defending their lawsuits to hold fossil fuel producers responsible for the effects of climate change.
US EPA calls emergency halt appeal to SCOTUS against power plant regulations “meritless”
The Environmental Protection Agency (EPA) defended its power plant rules against an emergency appeal to the US Supreme Court (SCOTUS) that is requesting a stay of the regulation.
Colorado adopts regulations to realise state’s geothermal energy potential
Colorado this month adopted a new set of regulations to facilitate geothermal energy development as part of the state’s ongoing effort to reduce its reliance on oil and gas energy sources.
BRIEFING: Ecuadorian bill poised to open country to carbon markets
An Ecuadorian legislative committee’s approval of reforms to the country’s environmental code means it has cleared the last major hurdle to legalising carbon markets, according to an industry attendee speaking to Carbon Pulse, hastening a regulated voluntary market and carbon-financed national conservation fund.
INTERVIEW: Argentine carbon developer bypasses voluntary market, citing barriers to entry
A small-scale carbon project proponent in Argentina has created its own methodology, commissioned an academic verifier, and procured a buyer for its credits at $20 per tonne without a registry listing, having sidestepped the mainstream voluntary market (VCM), noting financial and administrative barriers for similarly sized enterprises in the Global South.
ASIA PACIFIC
Forestry driving beef and sheep farm conversions in New Zealand, with or without carbon pricing, research finds
Four research programmes suggest a likely increase in pine plantations across agricultural land in New Zealand, even with a low or zero carbon price.
Chinese province seeks creation of first forest CCER credits since relaunch by year-end
The government of one of China’s northern provinces is aiming to secure carbon credits issued under the national voluntary programme from a large-scale afforestation project by the end of this year.
Australia’s Climate Active sees another departure
Another Australian company this week announced a decision to look more closely at changing the way it tackles net zero with a plan for only “limited” use of carbon credits and a plan to leave the government’s Climate Active programme.
Japan backs Indonesia’s energy transition vision
Indonesia and Japan have agreed to carry out a broad decarbonisation programme for the Southeast Asian country’s energy sector, with multiple research projects in the pipeline.
INTERNATIONAL
INTERVIEW: Tech company targets first sovereign carbon issuance valued at $300-600 mln later this year
A financial data and trading platform firm is targeting Q4 this year to facilitate $300-600 million worth of sovereign carbon issuances from countries in the Global South, as it hopes to restore trust and build scale in new international carbon markets.
VOLUNTARY
Verra opens public consultation on additionality tools to align with CCP voluntary carbon label
Voluntary carbon standard Verra has launched a public consultation for two of its tools in order to assess the additionality of project activities, with an aim to align them with the Core Carbon Principles (CCP) label of the Integrity Council for the Voluntary Carbon Market (ICVCM).
Gold Standard unveils new voluntary carbon mangrove methodology with remote sensing
INTERVIEW: Voluntary carbon credits used to fund US food waste diversion project
A project to divert food waste from landfill and incineration has launched in the US, where the sale of voluntary carbon credits will incentivise grocers to redirect edible waste food to donation centres, according to the developer.
New technology for ridding potent greenhouse gas emissions eyes market for voluntary carbon credits
A multinational energy company has unveiled a new technology that aims to tackle power industry emissions of sulfur hexafluoride, which is 24,300 times more potent than CO2, with an eye on creating a voluntary carbon methodology for projects in the future.
Carbon removal verifier issues credits to US corporations
A carbon dioxide removal (CDR) firm has issued a swathe of credits to a series of large US corporations in what it described as a turning point for carbon markets.
SHIPPING
Oil demand from shipping sector to peak by mid-2020s -consultancy
Demand for fuel oil from the maritime sector is expected to peak by the mid-2020s, displaced in large part by LNG and increasingly efficient ships, according to a global energy consultancy.
BIODIVERSITY (FREE TO READ)
Human-wildlife overlap to increase across over half of land by 2070, study says
The overlap between humans and wildlife is expected to grow across more than half of land worldwide by 2070, with potentially grave implications for habitat and species conservation, a paper has said.
Colombian carbon developer prepares to sell first Indigenous-led biodiversity credits
A Bogota-based carbon developer is piloting a biodiversity credit project in an Indigenous reserve in the Amazon, planning to put the first credits on sale after COP16 in Colombia, the company has told Carbon Pulse.
INTERVIEW: Biodiversity net gain exemptions “strangling demand”
Questionable exemptions for developers from England’s biodiversity net gain (BNG) rules are throttling demand for the market, a lawyer at Environment Bank has said.
Study flags gaps in technologies used for monitoring biodiversity credit projects
Monitoring technologies commonly mentioned in biodiversity credit methodologies still have limitations that experts should take into account when engaging in nature markets, a study has said.
Biodiversity Pulse: Thursday August 22, 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
Stock low – BP’s shares have fallen to the lowest in two years as investors punish the company for transitioning away from oil and gas, Bloomberg reports. The stock low may put pressure on new CEO Murray Auchincloss to pull back from a strategy he helped develop under his predecessor Bernard Looney. Despite the green energy transition, the oil major’s profits still largely depend on a still-growing market for fossil fuels, helping to finance its dividend payouts and share buybacks. The strategy contrasts with that of Shell, which under current CEO Wael Sawan, has taken a ruthless investment approach, focused on delivering shareholder returns. Shell has pulled back on its CO2 emissions cut plans and renewables investment, and its stock has risen about 16% since Sawan became CEO, compared to a 10% drop for BP during that period. BP has maintained its pace of buybacks this year, but investors may start worrying about how long it can continue doing so.
Put your heads together – Malawi, serving as the Chair of the Least Developed Countries (LDC) Group on Climate Change, will host the LDC Strategy & Ministerial Meetings from Aug. 26-28 at Bingu Wa Mutharika International Convention Centre (BICC). This crucial and timely gathering will unite high-level representatives, including ministers, climate negotiators, and experts from all 45 LDCs, marking a significant step in the global climate dialogue, a press release stated Thursday. Under the theme ‘Uniting for 1.5C – Aligned Climate Action and Resilient Futures’, the meeting will focus on reviewing progress in international climate negotiations, addressing critical issues, and crafting strategies to ensure impactful engagement at COP29 in Baku, Azerbaijan. Participants aim to align on priorities, set goals, and explore future strategies while building support for LDC-led initiatives.
EMEA
Windfall tax opposition – Companies across the UK’s oil and gas supply chain have expressed “grave concern” about government plans to increase windfall taxes and eliminate investment incentives to an industry that supports 200,000 jobs in the country. Some 42 companies have warned in an open letter to HM Treasury that official plans jeopardise £200 bln of investment in all forms of domestic energy, including renewables, with signatories coming from the manufacturing, engineering, and technology industries. The government currently plans to increase windfall taxes on oil and gas profits from 75% to 78%, extend the tax until 2030 and abolish tax incentives for further investment. A hostile tax environment would threaten not only the oil and gas industry, but also the firms who invest in renewable energies and carbon capture and storage (CCS) using cash generated through fossil fuels, the letter suggests. The tax rise follows two previously imposed tax hikes on oil and gas profits by the previous Conservative government – raising them to 65% and then 75% in response to soaring energy prices following Russia’s invasion of Ukraine. A windfall tax of 78% would bring the UK in line with Norway though energy industry officials say that country has enjoyed a much more stable tax and regulatory regime, which also offers generous incentives for investment. (BBC News)
Rio Tinto hits back at Nature – Anglo-Australian mining giant Rio Tinto formally requested the retraction of a scientific paper published on Nature on the Jadar lithium deposit. Rio Tinto’s chief scientist jointly submitted a letter to the scientific journal Nature-Scientific Reports as they believe the conclusions are incorrect as a result of a “significant number of deficiencies in the data, inconsistent application of scientific methodology and the manipulation of facts and references”, they said in a press release. Jadar is Europe’s largest lithium deposit, a critical raw material essential for lithium batteries, used in electric vehicles. The Serbian government appears to be poised to grant Rio Tinto an exploitation licence after revoking it in 2022.
A rallying cry – Chris Davies, director of Carbon Capture and Storage Europe (CCS Europe), has issued a letter to the association’s members reiterating the need to summon up support for CCS during the upcoming mandate. The letter states that the next few months will be vital to shore up support. It comes ahead of the nomination of Commissioners-designate begins. Davies points to the fact that there are yet no full-chain CCS projects being constructed in the Union this year and there is real danger that progress is stalling.
Let’s get waste in – The German waste industry BDE reiterated its demand that all waste incineration plants and landfills across Europe be included in the EU ETS as soon as possible at the hearing on the amendment to the German Greenhouse Gas Emissions Trading Act (TEHG). The aim is to create an EU-wide uniform emissions trading system with fair competition and a real steering effect towards fewer GHG emissions in the EU.
ASIA PACIFIC
Deal struck – Australia’s Whitehaven Coal has signed separate deals with Japan’s Nippon Steel and JFE Steel to sell stakes of 20% and 10% respectively, in its Blackwater coking coal mine, valued at $1.08 bln, Channel News Asia reported. The three entities will own the mine via an unincorporated joint venture to be managed by Whitehaven when the deal completes in Q1 2025. Whitehaven bought the the Blackwater and Daunia mines from BHP and Mitsubishi Corp for $4.1 bln last year. The latest deal will secure long-term supplies of coal for Japanese steel makers, as coal miners struggle to develop or expand mines due to climate concerns from financers. Whitehaven is seeking to extend the life of the Blackwater mine by an extra 60 years, pushing the mine’s life out to 2085, according to the Australasian Centre for Corporate Responsibility (ACCR). Commenting on the deal, ACCR said investors would rightly question Nippon’s previous commitments to being a globally competitive leader in the green steel market with this stake.
Next leader – Kim Sang-hyup, a climate policy veteran from South Korea, has been selected as the next director general of Seoul-based Global Green Growth Institute (GGGI), an international organisation on sustainable growth for developing countries, according to Yonhap. Kim, known for his key roles in crafting South Korea’s green growth strategies, is also a co-chair of the country’s 2050 Presidential Commission on Carbon Neutrality and Green Growth.
India for H2 hub – The Solar Energy Corporation of India (SECI) has issued a call for proposals to develop the essential infrastructure required to establish green hydrogen hubs across the country, it has announced. This initiative forms a crucial part of the country’s National Green Hydrogen Mission, which seeks to identify and develop regions capable of supporting large-scale production and utilisation of hydrogen as green hydrogen hubs. Under SECI’s latest call for proposals, at least two green hydrogen hubs, each with a minimum green hydrogen production capacity of 100,000 metric tonnes per annum are expected to be established by 2025.
AMERICAS
CO2 sequestration permitting tool – The US National Energy Technology Laboratory (NETL) has released a free online tool for publicly available data regarding the development of permit applications for CO2 sequestration. The Carbon Storage Site Mapping Inquiry Tool (MapIT) provides operators, project leads, and researchers with assistance to find, query, and download relevant data to use in the development of applications for Class VI wells. The MapIT database serves as a data exploration resource to support the characterisation of geologic carbon storage areas of interest and is designed to complement, but does not replace or replicate, resources available from the US EPA UIC Class VI program, the NETL said. The MapIT database has been aggregated from publicly available data gathered by various state and federal agencies, such as the US Geological Survey, the EPA, the US Department of Energy (DOE), and state geological surveys. Modules within the tool curate data related to geology, faults, fractures, injection and confining zones, hydrologic information, groundwater, groundwater wells, geomechanical and petrophysical data, and geochemical data.
Clean commuting – Two California commuter railroads – Caltrain and the San Bernardino County Transportation Authority – are implementing zero-emission trains, reported Smart Cities Dive. Caltrain, the commuter rail line that serves the San Francisco Peninsula, began operating zero-emission electric trains Aug. 11, with fully electrified service between San Francisco and San Jose starting Sep. 21. According to Caltrain, the transition from diesel to electric trains will cut CO2 emissions by 250,000 tonnes annually. Separately, in Southern California, the San Bernardino County Transportation Authority expects to begin operating self-powered, hydrogen-battery hybrid trains this fall along a nine-mile route between San Bernardino and Redlands. Elsewhere in US, the Chicago’s region commuter railroad Metra and the Massachusetts Bay Transportation Authority are also moving ahead with plans for battery-electric trains.
Addressing air pollution – The Washington Department of Ecology (ECY) on Thursday announced $10 mln in grant programme funding to support locally-led projects that reduce air pollution in disadvantaged communities. The funding will be available from the Climate Commitment Act (CCA) to implement its air quality and environmental justice provisions. Each grant award of up to $700,000 will fund planning, community engagement, and development of projects that improve air quality. Eligible project examples include supporting free yard waste collection or purchasing a community woodchipper; replacing old residential wood stoves with certified wood stoves or heat pumps; and reducing vehicle miles travelled.
Support and against – Leaders of investor group Interfaith Center on Corporate Responsibility (ICCR) sent a letter to the board of CEO association Business Roundtable (BRT) on Thursday, concerning the BRT’s opposition to the SEC’s climate disclosure rules. The BRT filed an amicus brief in support of a suit filed by the US Chamber of Commerce, but the letter challenged the position of BRT members, who have publicly supported the climate disclosure rules, against the filed actions of the BRT. The letter highlighted the misalignment, questioned the governance process surrounding the filing of the amicus brief, and emphasised the importance of the SEC’s rule in aligning with fiduciary interests while responding to climate change.
Ford focus – Ford is scrapping plans for an all-electric sport utility vehicle and will tighten its overall EV spending, reported E&E News. The US automaker announced a slate of changes Wednesday that will trim Ford’s percentage of capital spending devoted to EVs from 40% of the company budget to 30%. Ford’s electric SUV, anticipated for 2027, will be scrapped in favour of a new hybrid option. The company will also delay the launch of a new electric pickup truck by 18 months.
Let’s talk about it – Senator Leila Barros (PDT-DF) – the rapporteur of national cap-and-trade legislation in Brazil’s upper legislative chamber – has not yet scheduled a meeting with Deputy Aliel Machado (PV-PR) to discuss the proposal, which has stalled in its return to the Senate after being passed by the Chamber of Deputies in December. Barros said a meeting scheduled for last week fell through, but further discussions are expected “in the “coming days”. After changes were made in the lower legislative house, there are disagreements on substance and who will have final say on the bill, with the Senate retaining its intention of doing so. (Folha de Sao Paulo)
Argentinian wind credits – The Argentinian subsidiary of International Container Terminal Services, TecPlata, has become the country’s first port to obtain carbon neutral certification, partly through the purchase of Verra-certified carbon credits, linked to the Manantiales Behr Wind Farm project in Argentina and owned by YPF. Other sustainability initiatives launched by TecPlata include waste management, efficient water use, and emissions reduction. TecPlata is the fifth terminal in the ICTSI Group to achieve carbon neutrality following Contecon Guayaquil in Ecuador, Contecon Manzanillo in Mexico, Rio Brasil Terminal and Tecon Suape in Brazil. The Integrity Council for the Voluntary Carbon Market (ICVCM) recently ruled out many renewable grid methodologies from Core Carbon Principle (CCP) status due to additionality concerns.
VOLUNTARY
Scope 3 claim – The Voluntary Carbon Markets Integrity Initiative (VCMI) is working with the British Standards Institute (BSI) to deliver a consultation process for the beta Scope 3 claim, which will aim to help companies go further and faster on reducing their Scope 3 (supply chain) emissions. Once finalized, the claim will offer a science-based approach for companies to address Scope 3 GHG emissions that remain unabated, a LinkedIn post said. The public consultation will be open from Sep. 2 to Oct. 7, 2024, and will aim to gather feedback from a wide range of stakeholders. Details on how to participate will be published on VCMI’s website and via both VCMI’s and BSI’s social media channels. Those interested can also attend an info webinar on Aug. 29 – sign up here.
Verra/Misiones carbon collab – Verra and the Ministry of Treasury, Finance, Works, and Public Services of the Misiones announced Thursday an MoU to promote capacity building and advance training for the development of the Argentinian province. The collaboration process will begin with training on carbon markets, their status in the region, the operation of Verra’s VCS programme and its methodologies with the greatest potential for use in the province, the standard said. Verra said the effort is part of its global initiative to help national and subnational governments to advance in their environmental commitments towards the goals established under the Paris Agreement.
AND FINALLY…
DNC decarb – With 50,000 delegates descending on Chicago for the Democratic National Convention (DNC), organisers are taking steps towards sustainability, reported Grist. The DNC’s sustainability plan for the event includes something akin to a carbon offset programme for which delegates, journalists, volunteers, and even protestors will notice signs of in their inboxes and at airports and hotels. Prompts will call on guests to share their travel details anonymously, which the convention staff will then tabulate to estimate overall travel emissions as part of the Travel Carbon Inset Initiative. Barbara Haya, director of the Berkeley Carbon Trading Project at the University of California, Berkeley, said the DNC’s approach avoids the classic pitfalls of carbon offsetting, however, because it’s not a traditional offset or inset. Instead, convention organisers are encouraging individuals coming to the event to make an investment in sustainable development by donating directly to a local organisation. Additionally, the DNC will also focus on waste diversion and recycling, and this will be the first such convention to collect compost.
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