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TOP STORY
Rising unilateralism from big players threatening Article 6 carbon markets, report argues
Article 6 is under threat from rising unilateralism, especially from some of the most influential parties, while isolated efforts to raise integrity in the voluntary carbon market will not be enough, a new report has argued, urging countries to unite around UN carbon markets to drive sufficient climate finance to meet the Paris Agreement goals.
EMEA
European Commission taken to court again by NGOs over green finance labels
Another coalition of NGOs are taking the EU Commission to court over the decision to include fossil fuel planes and ships in the bloc’s sustainable finance legislation, a day after non-profits said they are suing the EU over its weak 2030 emissions reduction target.
INTERVIEW: Refiners see limited growth in e-fuels, bet on advanced biofuels
European refiners have low expectations for e-fuels production by 2030 and are instead planning to develop advanced biofuels to meet EU climate goals, the sector’s trade association told Carbon Pulse in an interview.
New UK govt drops legal defence of oil and gas field licences
The Labour Party-led UK government, in power since July, will not defend against green groups’ legal challenges to the previous Conservative government’s oil and gas licences for two major new sites off the coast of Scotland, it announced on Thursday.
ETS2 can soften impact of EU tariffs on Chinese electric cars, experts say
The EU needs to advance preparations for its upcoming carbon market for road transport and heating fuels, known as ETS2, as new tariffs on Chinese electric vehicles may convert into higher costs for consumers, experts told Carbon Pulse.
Euro Markets: EUAs remain in tight range as buyers soak up selling pressure down to Monday’s low
European carbon prices spent Thursday firmly embedded in this week’s €70.50-€71.50 range, closing marginally higher after buyers held firm at a support level from the start of the week as EU-wide emissions continued to decline, and UK Allowances rose to a seven-week high.
AMERICAS
WCI Markets: Post-auction relief rally extends in CCAs
California Carbon Allowance (CCA) prices raced higher over the week on sizeable futures and options activity, while Washington Carbon Allowances (WCA) steadied ahead of next week’s permit sale.
US ag tech firm announces $10 mln Series A raise
A US-based agricultural technology firm that quantifies soil carbon announced Thursday the completion of an initial close of $10 million in Series A investment.
Belize poised for $31 mln World Bank deal to include blue carbon
A Belizean project is undergoing appraisal with the World Bank, positioning the country for a financing package of $30.96 million that includes blue economy and carbon market development.
ASIA PACIFIC
Australia Market Roundup: Regulator issues around 650,000 ACCUs, ASX ACCU futures quiet
The Clean Energy Regulator (CER) has issued just under 650,000 Australian Carbon Credit Units (ACCUs) in its latest update, as the Australian side of the ASX futures contract for carbon credits remains largely nascent, one month since it was launched.
Plantation carbon developer charts course on ACCU projects, pays special dividend on back of success
An Australian wood chip processor and woodfibre exporter turned carbon developer outlined its market plans Thursday, suggesting strong rewards from a tightening compliance market and large upside to its particular Australian Carbon Credit Units (ACCUs).
Think tank rates Singapore’s carbon tax as far off meeting Paris Agreement
Singapore’s compliance carbon market, one of the few in Southeast Asia, is considered “highly insufficient” for meeting its climate goals, a think tank said this week, adding it does not expect the country to align with the 1.5C warming target of the Paris Agreement.
South Korea sets up special fund to encourage green tech exports, overseas cooperation
South Korea is planning to set up a special fund worth 400 billion won ($300 mln) to encourage public and private investment in overseas projects promoting green transition and carbon reduction.
South Korea ordered to draw up carbon reduction plan through 2049
South Korea’s Constitutional Court on Thursday ordered the government to map out more concrete plans for emissions reductions through 2049, the first of its kind in Asia.
INTERNATIONAL
COP29 president asks parties to support transparency framework with early submissions
The incoming Azerbaijan presidency of the COP29 climate conference on Thursday distributed a letter to all parties and observers encouraging early submission of climate progress reports to help accelerate the newest UNFCCC transparency framework.
VOLUNTARY
DATA DIVE: Brazil by far the most affected by Verra’s new consolidated REDD+ carbon methodology
Brazil’s carbon sector is set to be most affected by the changes to the REDD+ project assessment methodologies by credit certifier Verra, according to new data analysis carried out by Carbon Pulse.
VCMI opens consultation on its Scope 3 Emissions Guidance amid plea for the SBTi to follow suit
The Voluntary Carbon Markets Integrity Initiative (VCMI) officially launched a public consultation on its Beta Scope 3 Emissions Guidance on Thursday, with the VCMI executive director expressing hope that SBTi would align with its carbon crediting guidance.
INTERVIEW: Carbon removal offtake template clarifies buyer demands in opaque voluntary market
A template for carbon removal (CDR) offtake agreements sheds light on what buyers want in a voluntary market that is characterised by opacity and often limited legal capacity among smaller suppliers, according to specialist law firm.
BECCS champion Drax agrees to pay £25 mln after regulator finds gaps in wood pellet sourcing
British power company Drax has agreed to pay £25m to a voluntary redress fund after the UK energy industry regulator found it had submitted inaccurate sustainability data on the sourcing of wood pellets for its biomass plant in north Yorkshire, it said Thursday.
Meta reaffirms commitment to carbon removal strategy
Meta, the parent company of social media platform Facebook, will continue to invest in carbon removal projects as part of its climate strategy, the technology giant said in its 2024 sustainability report.
Blockchain firm teams up with registry to offer tokenised carbon credits
A US-based blockchain company has partnered with a Colombia-based carbon registry to list tokenised credits on a digital library with the aim of bringing about a more efficient and transparent way to trade assets, the company announced.
HeavyFinance partners with Lithuanian agribusiness on carbon farming
Climate tech investor HeavyFinance has partnered with an agribusiness firm to turn 300,000 hectares of agricultural land in Lithuania to regenerative farming practices, according to a press release.
Carbon ratings agency announces new engagement push across emerging markets
A carbon ratings agency is to make its headline ratings available on a Latin America-based registry platform, aiming to increase engagement in emerging markets.
AVIATION
INTERVIEW: Plastics inventor eyes ‘carbon-negative’ SAF using carbohydrates as feedstock
The inventor behind the commercialisation of biodegradable plastic has turned his hand to scaling up sustainable aviation fuel (SAF), and says that producing from corn carbohydrates can be ‘carbon negative’, lower cost, and more energy efficient than using CO2 as a feedstock.
Australia a ‘hotspot’ for SAF feedstock, but will struggle to keep it onshore, senate committee hears
Australia will struggle to keep sustainable aviation fuel (SAF) it produces onshore without government procurement or mandates, a senate committee on the Future Made in Australia legislation heard Thursday.
BIODIVERSITY (FREE TO READ)
INTERVIEW: Marine biodiversity credit project reduced in size to ensure integrity
A non-profit has reduced the potential size of a UK marine voluntary biodiversity credit project by approximately 89%, down from the 52,200 hectares initially considered, to ensure the initiative is as credible as possible, Carbon Pulse has learned.
A quarter of existing forests could be converted into agricultural lands by 2100, study says
Over a quarter of existing forests worldwide, 320 million hectares, could become agriculturally productive by the end of the century due to the effects of climate change, with potentially grave impacts on biodiversity, a paper said on Thursday.
Half of countries have degraded freshwater, UN says
Half of the countries in the world have at least one type of freshwater ecosystem in a state of degradation, following impacts on lakes and mangroves, UN bodies said on Wednesday.
South Australia ringfences over A$11 mln to support nature restoration on private lands
South Australia has announced the allocation of A$11.4 million ($8 mln) in grants to help landowners enhance and protect nature within their properties.
Biodiversity Pulse: Thursday August 29, 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!
IETA’s North American Climate Summit – September 24-26, NYC: NACS 2024 is the premier gathering of carbon market practitioners, experts, and governments from across North America and beyond. Attending NACS 2024 presents a unique opportunity to learn from experts, enhance your carbon market expertise, and expand your network of leaders to collaboratively move the needle on delivering climate action and transition finance at scale. Gain insights on the evolving carbon pricing landscape, latest market trends, most relevant regulatory developments and “what to watch” through COP29 Baku and beyond. Organized by IETA, in collaboration with the International Carbon Action Partnership (ICAP), NACS 2024 is an in-person event with recorded plenary and breakout sessions. The program features high-level plenaries, inspirational keynotes, topic deep-dives, cross-cutting breakouts, interactive side events, exclusive roundtables and unmatched networking opportunities to foster meaningful connections. Secure your spot
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
Shell-acked – Shell plans to cut around 20% of its workforce in some oil and gas exploration and development divisions as the CEO seeks to boost efficiency and profitability. The latest job cuts follow similar moves in the company’s deal-making team, as well as low-carbon solutions, chemicals, and offshore wind. A person familiar said the reductions would affect the oil major’s exploration, strategy, and portfolio segment as well as its development, subsurface, and wells business. (Bloomberg)
Climate ratings – Think tank Climate Action Tracker has downgraded its climate action ratings for a string of countries recently, including Singapore and Canada, as well as Brazil and Germany. The ratings are a product of a country’s policies and action, NDC target, and climate finance. Brazil’s policies and actions were upgraded from “highly insufficient” to “insufficient”, noting that G20 president and host of COP30 has returned to earlier, stronger NDCs and seen renewed investment in infrastructure, industry, and transformation of the economy. Meanwhile, the think tank noted that Germany’s recent climate policies and weak economy have moved emissions projections significantly downwards, but also that the division with the coalition government also put its climate targets in danger, resulting in the country’s rating also being “insufficient”. This label indicates that a country’s climate policies and commitments need substantial improvements to be consistent with the Paris Agreement’s 1.5C temperature limit.
EMEA
Cookstove guidance – In recent weeks, the Ghana Carbon Market Office and the Ministry of Energy, Ministry of Environment, and the Energy Commission, with support from USAID launched a key initiative to develop further guidance for cookstove projects seeking to be authorised under Article 6 of the Paris Agreement. The initiative aims to streamline the process of seeking policy support, technology approval, and authorisation into one single step, and also seeks to create strategies for developers to respond to high environmental integrity preconditions. The CMO and stakeholders have visited select cookstove manufacturing and distributors as part of the process, and met at a a national forum last week to discuss issues like fraction of non-renewable biomass value and measuring fuel savings.
Announcing eligibility – Abu Dhabi-based national central cooling company has received certification under Verra’s Verified Carbon Standard (VCS) at one of its plants. The year-long study confirmed that the plant’s operations bring environmental benefits, estimating that the 28,000 Refrigeration Ton (RT) facility prevents 19,320 tonnes of CO2 emissions each year due to savings in electricity consumption. The report’s findings suggest that the company is now eligible to trade carbon credits, Zawya reported.
Green fuel collab – Uniper has joined forces with Liquid Wind to develop a synthetic methanol plant in Sweden, Ship and Bunker reports. The two companies’ planned NorthStarH2 project in Ostersund is expected to produce more than 100,000 tonnes of synthetic methanol a year, with the shipping and chemical industries to be its main customers.
ASIA PACIFIC
UK, Thailand partnership – The UK Partnering for Accelerated Climate Transitions (UK PACT), a programme funded by the UK Government, has called for proposals for projects to help Thailand meet its climate targets through interventions in green finance, carbon pricing, and non-financing reporting and disclosures. The programme will help the Southeast Asian nation achieve its climate targets including reducing emissions by 40% by 2030 and achieving carbon neutrality by 2050 and net zero by 2065. Successful projects will receive grants of up to £500,000 per year and each project must last up to two years. The last date for submitting proposals is Sep. 25, 2024.
Milestones – China’s State Council on Thursday released a white paper that details the country’s achievements in the energy transition, according to state news agency Xinhua. China, the world’s largest investor in energy transition, saw its energy intensity decrease steadily over the past decade, leading to energy savings equivalent to around 1.4 bln tonnes of standard coal and reducing CO2 emissions by 3 bln tonnes. In 2023, the newly installed capacity in China accounted for more than half of the world’s total, according to the white paper.
Agri partnership – Offset project developer Degas has teamed up with Japanese trading house Sojitz to accelerate the development of an AI-based model specialised in satellite image analysis, to promote the digital transformation of agriculture in developing countries, and further expand its decarbonisation business, it announced Thursday. The companies said they aim to create new solutions using AI-based models in a wide range of Sojitz’s business areas, starting with agriculture. Degas, aiming to promote regenerative agriculture, is also working on sustainable farming methods such as minimal tillage and the introduction of cover crops.
AMERICAS
Another lawsuit – The American Sustainable Business Council (ASBC) has initiated a lawsuit against the state of Texas, representing companies like Etho Capital and Sphere. The lawsuit challenges the constitutionality of SB-13, a Texas law that penalises companies and investors who opt out of investments in fossil fuel-dependent enterprises. The ASBC argues that SB-13 infringes on the rights to free speech and association as guaranteed by the First and Fourteenth Amendments of the US Constitution. Filed in the Western District of Texas’ Austin Division, the lawsuit claims that SB-13 discriminates against businesses that incorporate ESG metrics into their operations and investment decisions. The law is seen as harmful not only to such businesses but also to the broader Texan public, including taxpayers, workers, business owners, and pensioners, particularly against the backdrop of the escalating impacts of climate change and growing public concern for environmental sustainability. The ASBC contends that businesses must retain the freedom to operate responsibly and make investment choices that align with long-term viability and responsible business practices, suggesting that the ability to operate in such a manner is fundamental to financial success and sustainability.
Against methane mandate – Republican-led states this month asked the US Supreme Court (SCOTUS) to temporarily block the country’s Environmental Protection Agency (EPA) from requiring existing oil and gas facilities to slash their methane emissions, E&E News reported Thursday. Oklahoma, Ohio, Kentucky, and Wyoming were among the 23 states that called for the halt. They argued that allowing the rule to go into effect will force states to crack down on hundreds of thousands of oil and gas facilities, which many states have never regulated before. The states’ application to the SCOTUS’ emergency docket Tuesday is the latest attempt to delay compliance with part of the new rule while litigation is ongoing. The US Court of Appeals for the District of Columbia Circuit in July rejected a motion by an alliance of states and oil and gas trade groups to stay the regulations.
PROVE it to US – A bill that mandates the study of carbon intensity of nearly two dozen industrial products this week received endorsement from a large bipartisan House caucus, E&E News reported Thursday. The Problem Solvers Caucus endorsement of HR 8957 – dubbed the Providing Reliable, Objective, Verifiable Emissions Intensity and Transparency (PROVE IT) Act – has the potential of adding 18 additional Republican supporters to an existing list of 17 GOP backers. The bill would require the Secretary of Energy to conduct a study and submit a report on the GHG emissions intensity of certain products produced in the US and in certain foreign countries. It was introduced by Representatives John Curtis (R) and Scott Peters (D) and has 34 additional co-sponsors, 17 of whom are members of the Problem Solvers Caucus. The caucus has 62 members evenly split between Republicans and Democrats.
EVs, not ZEVs – Four Republican senators this week wrote a letter to the Federal Trade Commission (FTC) demanding the agency to develop guidelines to ensure electric vehicles (EVs) are “not deceptively advertised” as zero emission vehicles. Lithium-ion batteries used in EVs are manufactured from carbon intensive mining of minerals, they said, adding that electricity required to charge EVs also largely comes from non-renewable resources. The group denounced the Biden Administration’s “heavy-handed push” for EVs, which they said conveniently ignores the environmental impacts of these vehicles. “The lifecycle of an EV is far from zero-emission,” they wrote, urging the FTC to investigate how EVs are being advertised and marketed to American consumers. The senators requested a response from the commission detailing its plan to develop standards for manufacturers and dealers to accurately advertise EVs by Sep. 23, 2024.
NY clean energy roadmap – Governor of New York Kathy Hochul (D) on Thursday announced the launch of the state’s Energy Plan process by convening a board to update the region’s energy system roadmap. The plan directs programme and policy developments to guide energy-related decisions in the public and private sectors in New York. Chancellor of the State University of New York John King was also appointed the member of the board, which is chaired by the President and CEO of the New York State Energy Research and Development Authority Doreen Harris. Other board members include heads of the state agencies and authorities, appointees from the Governor, Senate, and Assembly, and Rich Dewey, president of the New York Independent System Operator. Currently planned to be considered by the Board in December 2025, the final energy plan will provide a 15-year outlook and focus on strategies to meet future energy needs and advance economy-wide decarbonisation.
On the rise – Clean energy jobs in the US rose at double the rate of job growth (4.2%) in comparison to the rest of the economy (2%), said the US Department of Energy (DOE). US Energy and Employment Jobs Report (USEER) showed that the country added 142,000 new clean energy jobs in 2023. Construction employment in energy grew 4.5%, almost double the economy-wide construction employment growth of 2.3%. Employment increased across all five USEER energy technology categories, which includes electric power generation; energy efficiency; fuels; motor vehicles; and transmission, distribution, and storage, in 2023. Clean energy jobs increased in every state across the US.
Sustainable infrastructure – Infrastructure consulting firm AECOM and sustainability platform One Click LCA on Thursday announced a multi-year agreement to support AECOM’s pursuit of a 50% carbon reduction on its major client projects. The consulting firm will utilise One Click LCA’s platform for its buildings and infrastructure initiatives. This agreement enables comprehensive carbon data collection and integration into the AECOM’s ScopeX portal, which the firm said was essential for scaling up the decarbonisation of its project portfolio and demonstrating measurable progress to clients.
CDR in Canada – Carbon Removal Canada, a policy initiative under non-profit Clean Prosperity Foundation, earlier this month wrote to ministers Steven Guilbeault and Jonathan Wilkinson urging them to establish a 2035 target for permanent CO2 removal (CDR) in the country. In a letter signed alongside 12 other organisations, the group requested the government to publicly commit to a consultation in 2025 to receive input from various stakeholders. National carbon removal goals would offer companies and investors additional predictability for long-term planning and investment, they said. Carbon Removal Canada estimates that CO2 removal in the country could create $27 bln in demand for sectors like green steel and cement in 2050.
Additions and subtractions – Vancouver clean technology firm BluSky Carbon announced on Thursday a partnership with Germany-headquartered Cula Technologies, a digital infrastructure provider, to collaborate on technical data verification services. Cula’s software integrates with BluSky’s daily operations, tracking every step of the process of carbon removal with transparent, real-time data, the partners said in the press release. Separately, BluSky also said its common shares were listed on the US-based OTCQB Market under “BSKCF”, and would continue to trade on the Canadian Securities Exchange (CSE) under “BSKY” and on the Frankfurt Exchange under “QE4”. Lastly, further to its Aug. 9, statement, BluSKy confirmed that it has terminated the letter of intent with Carbon Alliance Group, and will no longer be moving forward with the acquisition of the company.
Q2 reports – Ostrom Climate Solutions, a carbon offset developer based in Vancouver, reported a net loss of C$856,900 ($635,500) for fiscal Q2, 2024 ended June 30. The company’s gross profit rose to $369,000 from $95,700 in Q2, 2023, while revenues reached $578,100, an increase of 186.6% YoY from growth in offset sales and consulting services. During Q2, 2024, the company expanded its Upper Pampanga River Climate-Smart Agriculture Rice Project. On June 24, it announced a cooperative agreement with Klima 1.5 Corp, a Philippine-based developer to produce a conceptual plan and feasibility study for carbon projects in the Philippines. The main initiatives of the agreement include afforestation, reforestation, and revegetation projects for carbon sequestration and enhancing biodiversity, Ostrom said.
VOLUNTARY
Peak supply – Voluntary credit issuances are now expected to peak in 2031, two years later than previously projected at 1,554 Mt, according to an update published by analysts at MSCI Carbon. The attenuation of issuances was driven by an observed slow down in registration rates and an improved methodology for ARR projects, they wrote. Global credit supply remains concentrated across just a few countries with 51% of issuances up to 2050 coming from five nations: India, Brazil, China, the US, and Mexico. (Full report for MSCI subscribers only)
Forest carbon – South Pole has announced that the Forest Carbon Monitoring project has moved past prototypes into its second stage of development. Funded by the European Space Agency, the initiative is working to develop cost-effective carbon monitoring tools using innovative satellite remote sensing, supported by field data. Next steps include integration of AI-based approaches, development of new statistical methods, and testing of feasibility of data assimilation. Other partners include European Forest Institute, Terramonitor, and GAMMA Remote Sensing.
SCIENCE & TECH
CO2 to protein – Microbiology company Aerbio has launched a pilot plant in the Netherlands aiming to produce 200 kg of single-cell protein a month from CO2 and hydrogen. It’s aiming to determine how to integrate the single-cell protein (known as ‘proton’) into the food chain for use in salmon and chicken feed. Plans are for this facility to achieve 250 tonnes of production each year, while subsequent facilities could produce as much as 100,000 tonnes of proton per year. Aerbio said that its product requires no arable land, and its process can be deployed at industrial areas wherever food-grade CO2 and hydrogen are being created. The carbon footprint of Proton is up to 90% lower than traditional fishmeal or soy ingredients, Aerbio claims. The company plans to ship its first products in the next few months and to begin chicken and fish trials by the end of the summer.
AND FINALLY…
Wool not wasted – Turning wool into pellets may not only help reduce waste, but also fight climate change, following an effort by organic farming company Taproot Farms to do exactly that in Nova Scotia, reported the Weather Network. Much of the wool that’s produced there isn’t ideal for spinning, either because it’s from sheep that aren’t bred for wool production, or it comes from a part of the sheep that gets dirty and matted, meaning farmers end up burning or discarding their wool, or selling it for less than it cost to shear it. To counter this, Taproot is planning to produce wool pellets as part of an effort to boost food production and deal with climate change — while also offering an additional revenue stream for sheep farmers. Wool pellets can be sprinkled on the surface of pots and gardens, or tilled into soil, and support plants in retaining water, which could be useful in dealing with wild swings in precipitation caused by climate change. They also produce slowly release nitrogen, providing an alternative source of nutrients for vegetable growers looking to avoid chemical fertilisers. Response from farmers has been overwhelmingly positive, and wool pellet production is now scaling up in the Maritime provinces and beyond, with Canadian Co-operative Wool Growers creating a commercial machine to produce pellets at a larger scale, which it expects to be up and running by fall at the latest. Taproot said, once the machine is set up, the pellets produced from low-quality wool that the mill purchases, as well as Taproot’s own waste wool, will be available for retail purchase or could go back to sheep farmers themselves for use in their fields.
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