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TOP STORY
FEATURE: Voluntary carbon market lacks mechanism to purge disreputable actors
Voluntary carbon market (VCM) institutions, ranging from registries to ratings agencies and insurers, are often unable to weed out bad actors in repeated infringements with industry standards, lacking consistent policies or criteria to do so, market players told Carbon Pulse.
AMERICAS
Brazil development bank approves nearly $29 mln for Amazon reforestation
A Brazilian project developer has received R$160 million ($28.8 mln) in financing from the country’s national development bank to support reforestation projects in the Amazon.
Colombia to auction ETS allowances in 2025 -media
The Colombian government is planning to host the first auction of ETS allowances next year, according to multiple local media sources.
Argentine oil and gas province seeks net zero via carbon markets
An Argentine province known for its reliance on extractive industries hosted a carbon markets seminar this week, aiming to leverage offsets to help achieve net zero emissions alongside oil and gas development.
Mexican Yucatan IFM project yields first batch of 380k carbon credits
Developers announced on Wednesday the first tranche of issuance from an improved forest management (IFM) project in Mexico’s Yucatan Peninsula region.
Industry lawsuit challenges California ARB’s zero emissions forklift regulation
An industry association last week filed a lawsuit against California’s regulator ARB for its decision to approve a new set of rules that mandates emissions reduction from forklifts operated in the state.
ARB offset issuance continues to fall short of 2023 levels despite picking up pace
California regulator ARB continued to ramp up its compliance-eligible offset issuances over the latest two-week period but continues to trail 2023 levels year-to-date, data published Wednesday showed.
Americans favour carrot vs stick approach to achieving emissions reduction goals -report
A US non-profit found Americans preferred an incentive-based approach to emissions policy options compared to penalties for failure to meet targets, although there was less support for certain abatement policies in 2024 than four years ago.
US awards further $15 mln for small landowner access to climate markets
A US federal department announced Wednesday that it is awarding $15 million to nine projects aimed at helping under-served and small-acreage landowners to access emerging climate markets.
Increase cap-and-trade stringency, says Quebec gov’t advisory committee
More ambitious changes are needed to Quebec’s carbon market to meet climate goals, including amendments to compliance periods, use of offsets, and free allocations, says a report commissioned by the provincial government.
Canadian Atlantic province’s forests emit more carbon than captured after tropical storm
Forests in an Atlantic province in Canada are currently releasing more carbon than they sequester after a major tropical storm two years ago, according to a government report published Tuesday.
ASIA PACIFIC
Australian miner says committed to ‘real zero’ by 2030, shuns offsets
Fortescue, one of Australia’s iron ore giants, used Wednesday’s full year financial results presentation to underline its plans to hit zero emissions for Scopes 1 and 2 by the end of this decade despite its diesel-heavy carbon footprint.
Key Asian banks see progress in establishing decarbonisation pathways, but more action needed
Banks in Japan, Singapore, and South Korea have made strides in developing decarbonisation strategies and establishing climate-related objectives, but more decisive action is needed to align with global climate commitments, a report has found.
Major Asian nations must abandon LNG to decarbonise shipping sector -report
Countries including China, Japan, and South Korea must abandon the use of liquefied natural gas (LNG) as a bridge fuel in order to fully decarbonise their shipping sector, a report released Wednesday said.
China’s Tianjin to add more companies under local ETS
The Tianjin municipal government is seeking to expand the coverage of companies regulated under the local emissions trading scheme (ETS).
Japanese agricultural lender backs biochar industry consortium
A major agricultural lender in Japan has decided to support an industry consortium that aims to utilise carbon credits created from biochar projects.
EMEA
ICE launches satellite platform to track cocoa and coffee deforestation
Energy and commodities marketplace Intercontinental Exchange (ICE) will utilise its investment in a satellite data startup to ensure its coffee and cocoa trade meets EU deforestation standards.
INTERVIEW: UK should take a ‘maximalist approach’ to renewables investment to achieve targets
The UK should redesign its contracts for difference (CfD) scheme to take a ‘maximalist approach’ to renewable energy investment if it is to speed up the rollout of clean energy fast enough to meet its targets, according to a trade body.
Agri-PV could triple clean energy production in Central Europe, study finds
Central Europe has the potential to triple its clean energy production by integrating solar panels with food crops, bringing benefits to the farmers willing to adopt the technology, according to a study published on Thursday.
Oman environment authority signs agreement to generate forest carbon credits
Oman’s Environment Authority (EA) has entered into a cooperation agreement with the nation’s main energy association (OPAL) in a bid to scale up investment in afforestation carbon projects, according to local reporting this week.
Euro Markets: EUAs decline 1% despite late gas price spike after COT data shows funds cutting shorts further
EU carbon allowance prices gave up early gains and ended the day 1% lower after weekly positioning data showed investment funds further reducing their bearish bets and a rise in hedging related to coal-fired power generation, before rallying briefly in the afternoon after erroneous reports of an outage at a major US LNG plant triggered a momentary spike in natural gas prices.
INTERNATIONAL
Several countries ignoring Glasgow pledge to pump public money into fossil fuels, finds report
Several countries, including the US, have been violating their commitment to the Clean Energy Transition Partnership (CETP) to reduce public finance for fossil fuel projects, finds a report.
World reliant on US to reach geological CO2 storage potential -report
The world will only be able to hit a global storage rate of 16 billion tonnes of CO2 per year by 2050, assuming the US contributes 60% of this total, according to a new scientific paper.
VOLUNTARY
Fintech startup debuts debt financing tool for voluntary carbon project developers
A fintech company has introduced a tool that enables carbon project developers to simulate the effects of different debt scenarios on their cash flow, the company announced.
Brazilian voluntary carbon certifier opens public call for verification bodies
A Brazil-based voluntary carbon standard has opened a public call for the registration of validation/verification bodies (VVBs) interested in participating in its certification programmes.
Verra rejects 37 Chinese rice cultivation projects, sanctions proponents, VVBs
Verra has taken ‘unprecedented action’ after rejecting 37 rice cultivation projects based in China and also imposing sanctions against the proponents and validation and verification bodies (VVBs) involved, the standard body announced Wednesday.
BIODIVERSITY (FREE TO READ)
Australian supermarket giant commits to SBTi deforestation targets
Australian supermarket giant Woolworths Group will stop selling beef and other commodities linked to deforestation by the end of next year, in accordance with Science-based Targets Initiative (SBTi) guidance, it said on Wednesday.
IBAT releases guidelines to help companies align with TNFD, GRI
The Integrated Biodiversity Assessment Tool (IBAT) Alliance has released guidelines to support companies in corporate disclosures that are aligned with the Taskforce on Nature-related Financial Disclosures (TNFD) recommendations and the Global Reporting Initiative (GRI) standard.
EU countries fall short of addressing unsustainable fishing, EEA warns
EU member states are largely failing to promote sustainable fisheries and address marine biodiversity loss, the European Environment Agency (EEA) has warned.
Biodiversity net gain register listing another 16 sites
The biodiversity net gain (BNG) register in England will list another 16 sites from project developer Environment Bank on its website over the next month, following a partnership tipped to shift the dial on market supply, Carbon Pulse has learned.
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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
Scenarios vs reality – Global gas industry body the International Gas Union has critiqued the scenarios relied on by policymakers in tackling climate change for failing to take into account future energy demand, and warns of energy shortages by 2030. The IGU report showed that between 2021 and 2024, global energy demand had risen 2.7% and at that pace, the world would consume 586 exajoules (EJ) of energy in 2030, according to the IGU. This energy demand would be led by new sources such as the adoption of energy-intensive AI and the increased need for cooling, the group said. However, all the energy demand scenarios it examined assume that the growth rate of global energy demand will steeply decelerate towards 2050, the IGY said. For example, the scenario from the International Energy Agency, which charts a pathway for the global energy sector to achieve net zero CO2e by 2050, assumes energy demand at 452EJ in 2030. “Both scenarios and current trends are needed to plan energy investments and assure near and medium-term security of supply,” said the IGU. (FT)
EMEA
UK rekindles energy ties with EU – The UK’s new climate minister, Kerry McCarthy, has called for a European alliance to bolster energy security during a North Sea summit hosted by Norway on Wednesday. In her first overseas visit since taking office, McCarthy attended the Offshore North Seas Conference in Stavanger, Norway, and held her first talks with European energy partners. Speaking with EU Energy Commissioner Kadri Simson, “McCarthy pledged to rebuild the UK’s international energy relationships, as part of a renewed drive by the UK Government to work more closely with the EU to drive Putin out the energy market for good,” said a statement from the UK Department of Energy Security & Net Zero (DESNZ). The UK has set a new target to deliver clean power by 2030 and has launched a new public company, Great British Energy, to deliver it with new green investment opportunities.
Alternative proteins – A new £38 mln ‘virtual’ centre that will study whether alternative protein sources like lab-grown meat, plant proteins, and insects could become part of the UK diet is due to launch in the UK. The National Alternative Protein Innovation Centre (Napic) will be led by the University of Leeds, in partnership with the James Hutton Institute, Imperial College London and the University of Sheffield, and will receive £15 mln in funding from the UK Research and Innovation. As well as academics, more than 120 organisations are involved, including small and large businesses, farmers, regulators and councils. The centre will explore whether cultured meat or proteins derived from plants, fungi, algae, insects and microbes can be healthy as well as sustainable, aiming to position the UK as a leader in alternative protein development. Animal agriculture is estimated to produce up to a fifth of GHG emissions. (the Independent)
Sustain sustainability – The Board of Directors of the European Investment Bank today backed €10.8 bln of new financing. Of these, €5 bln will go to clean energy, water, and forestry and €137 mln to sustainable transport and better communications. For instance, they approved investments in new solar power schemes in Italy, Poland, Romania, and Spain, climate action investments in France, upgrade of district heating networks in Lithuania, onshore and offshore wind projects in the Netherlands, and better integration of renewables into the electricity distribution network in Poland and Spain.
ASIA PACIFIC
Noble agreement – Indian renewable energy company ReNew has signed a green attribute sale contract of 437.6 MW with Microsoft to generate one million units of green electricity attributes annually, contributing to Microsoft’s ambition to be carbon negative by 2030, it announced. Under the agreement, ReNew will direct $15 mln of revenue from the contract towards a community fund to support initiatives focusing on women’s livelihoods and economic empowerment, energy access, rural electrification, environmental remediation, and water quality improvement. The deal is amongst India’s largest corporate renewable agreements, the Indian firm said.
Written warning – New Zealand legal group, Lawyers for Climate Action, has written an open letter to the country’s Financial Markets Authority, calling for accurate scenario analysis in climate-related disclosures. It said making sure scenario analysis is accurate was critical for directors and the general public to accurately weigh up the risks and opportunities of climate change. The group said it was concerned the emissions reduction pathways used by some climate reporting entities for their 1.5C scenario did not align with the rapid decarbonisation actually needed to limit warming to 1.5C, warning that NZ companies could be creating a false sense of security.
CCS deal – UK-based firm Carbon Clean has signed a Memorandum of Understanding (MoU) with Malaysia’s Petronas to collaborate on carbon capture and storage (CCS) technology, the firm announced. Under the agreement, the companies will evaluate various methods of carbon capture for potential integration into different areas of Petronas’ operations. Carbon Clean’s CycloneCC solution has the potential to reduce the total installed cost of CO2 capture by up to 50% compared to conventional solutions, it said. Both companies will work together to explore and develop how the modular technology can be used for post combustion CO2 capture.
AMERICAS
Worse to bad – Canada’s climate action rating was updated on Monday by Climate Action Tracker (CAT), boosting the country’s “highly insufficient” rating to “insufficient”. The rating, which is a product of a country’s policies and action, NDC target, and climate finance, stepped up a notch as a result of improved policies and action. To date, Canada has implemented a new EV sales mandate, maintained its carbon pricing scheme, and signed a multitude of long-term offtake agreements for clean electricity. However, CAT noted that Canada risks backtracking on progress if the incumbent Liberal party is ousted, given the Conservatives’ campaign to scrap the federal carbon tax. To move forward on climate action, CAT said that Canada could ensure that queued policies from 2022 – such as the clean electricity regulations, methane regulations, and a cap on oil and gas production – are finalised in 2024.
VOLUNTARY
Green ammonia – Gold Standard has opened a consultation on a proposed new Methodology for the Production of Green Ammonia, open from Aug. 28 and closing on Sep. 26, 2024. The methodology would be applicable globally, and is applicable to project activities that produce ammonia for fertilisers using less carbon-intensive processes than conventional production, mainly through the use of renewable energy. The conventional ammonia production process accounts for about 1% of total CO2 emissions. Submit feedback here.
New rocks – Global resource management company, Veolia, plans to launch a new natural rock dust product in September that boosts soil health and helps counter climate change by capturing inorganic CO2 via enganced rock weathering, it said in a release Wednesday. The new product, called Pro-Grow Rockdust, comes from a by-product of the quarrying industry and is based on basic silicate rocks that have been scientifically shown to capture up to 25% of their weight in CO2 when integrated with soil and compost, the firm said.
AND FINALLY…
It’s fantastic – Lego will pay up to 60% more for plastic resin made mostly from renewable or recycled material, financed by recent surges in profit, the Danish toymaker told the Financial Times on Wednesday. The company is trying to stimulate demand among producers to increase the supply of more sustainable raw material, as it has a 2032 goal of making all of its products from renewable and recycled materials. Lego’s revenues in the first half of the year increased by 13% to DKK 31 bln ($4.6 bln), while operating profit rose 26% to DKK 8.1 bln, both records and double the equivalent from the first half of 2020. The founding family and chief executive of the privately-owned company have committed to eliminating oil and other fossil fuels from its supply chain because of Lego’s role as a child’s toy, the FT reported.
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