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TOP STORY
FEATURE: Lack of clarity on penalties casts doubt over efficacy of CORSIA carbon offsetting scheme
A lack of clarity on how the CORSIA penalty system will work, and the fact only a handful of countries have started transposing the UN’s international aviation offsetting scheme into their national laws, raises doubts over how the mechanism will be enforced.
ASIA PACIFIC
PREVIEW: NZU auction a toss-up between declining or partially clearing
The upcoming New Zealand Emissions Trading Scheme (ETS) auction is unlikely to clear, or if it does, only partially, as participants had mixed views on how this would affect market sentiment.
China sees first batch of CCER carbon projects open for public comment
China has listed the first batch of voluntary carbon projects under the national offset programme for public consultation, moving one step closer to the issuance of new credits.
Australian regulator reduces audit requirements for low risk plantation projects
Australia’s Clean Energy Regulator has announced it is lowering audit requirements for low-risk, small scale plantation forestry projects.
Japanese gas firm to invest $25 mln in carbon credit fund, eyes nature-based offsets
A major gas supplier in Japan has agreed to invest up to $25 million in an international climate fund that seeks to create a pipeline of nature-based carbon credits.
Australian agtech firms team up to propel sustainable farming through environmental crediting initiatives
Two Australian agtech firms have announced a strategic alliance to look into developing environmental crediting programmes aimed at promoting sustainable farming practices.
EMEA
No new German state-ordered hard coal closures from 2027 as market set to phase out sufficient capacity, says govt
The German government said Monday that it will not need to order hard-coal plant closures from 2027 related to the tender process, with enough capacity already set to be taken offline due to market-driven forces, or already-implemented ban orders, in line with a legislated phaseout timeline.
New compliance deadline drives earlier trade in quarterly, August EUA contracts, data show
Open interest in EUA futures for delivery during the new compliance periods up to three years ahead has started to build much earlier than seen before, as buyers begin to factor in the new deadline.
EU adopts final list of products considered to permanently bind CO2
The CO2 contained in construction materials – such as cement, bricks, and tiles – will be considered as “permanently chemically bound” for centuries and qualify as non-emitted under the EU’s Emissions Trading Scheme (EU ETS), according to new rules adopted over the summer.
Global soy standard unveils update to align with new EU deforestation law
A global certifier of sustainable soy and corn production is consulting on an update to its standard that will allow companies to demonstrate that they align with the European Deforestation Regulation (EUDR).
Euro Markets: EUAs mark time amid US holiday and weaker energy as auction volumes rise 1.3%
EU carbon allowance prices ended Monday little changed despite slightly reduced selling activity as the US markets were closed, while the EU began auctioning slightly more allowances each day after the amended schedule for the remainder of the year took effect and European energy markets corrected lower after sharp rises at the end of last week.
INTERVIEW: Turkish businesses unprepared for CBAM, says carbon startup founder
Turkish businesses are “not ready” to comply with the EU’s Carbon Border Adjustment Mechanism (CBAM), according to a carbon startup founder who warned some companies could go bankrupt if they don’t plan ahead.
Veteran carbon analyst leaves LSEG
A veteran carbon analyst has left LSEG after six years, around 18 months after several colleagues resigned to join a rebranded analytics firm also covering carbon markets.
VOLUNTARY
Japanese companies partner on Verra-certified forest carbon credits
Eight Japanese companies have partnered with the government of Hamamatsu City to generate Verified Carbon Standard (VCS)-certified credits using the Improved Forest Management (IFM) methodology, according to a press release.
VCMI Scope 3 voluntary carbon claim opens door to climate laggards, says NGO
The Voluntary Carbon Markets Integrity Initiative (VCMI) could open the door to greenwashing with its revised Scope 3 claim framework, despite its intention to lure corporates onto the mitigation ladder, an NGO has warned.
Doubling of carbon removal credit prices essential to sustain regenerative agriculture in US -study
Regenerative agriculture, including cover cropping and no-till farming, can significantly reduce carbon emissions when applied to large-scale farming operations across the US, but removal credit prices need to rise significantly to sustain such practices, according to a new study.
Benin project seeks to raise €1.5 mln for cookstoves carbon project
A clean cooking project in Benin has opened a call for crowdfunding, looking to raise €1.5 million for a cookstoves carbon project in the west African country.
UK looks to award grants for carbon, biodiversity projects in Amazon
The UK PACT Amazon Regional Fund is branching out to offer grants to support carbon and biodiversity projects in Bolivia, Ecuador, Guyana, and Peru.
INTERNATIONAL
Oil and gas basins with clean energy opportunities could be new frontiers, consultancy suggests
Oil and gas provinces that integrate low-carbon energy into extraction for lower overall carbon intensity could be classed as ‘premium’, according to an energy consultancy.
Blue hydrogen necessary step on way to greener fuels, say experts
Blue hydrogen, made from natural gas where the CO2 emissions are captured and stored, will be an intermediary step on the path to a wider scale rollout of greener versions made using renewable electricity, said industry experts during a conference Monday.
Power sector sees CO2 emissions rise ahead of stricter climate policies -report
Power plants around the world are emitting more CO2 in anticipation of stricter climate policies that could render fossil fuel reserves worthless, according to a new report.
AMERICAS
LATAM Roundup: Int’l development institutions spotlight carbon pricing
Carbon Pulse rounds up developments in Latin American and Caribbean carbon markets for the week ending Sep. 1, which saw several carbon pricing announcements propelled by support from development banks and intergovernmental alliances.
BIODIVERSITY (FREE TO READ)
APAC carbon service provider, biodiversity project developer launch hybrid credit solution
An Australian biodiversity credit provider has partnered with a carbon credit supplier for what they describe as a new environmental impact offering which combines traditional nature-based credits with one square metre of 20-year biodiversity protection.
Australia seeks feedback on Nature Repair Market rules
The Australian government on Monday launched a one-month consultation on some of the technicalities of its Nature Repair Market (NRM) scheme, including rules around project registration, biodiversity certificates, and the register.
Scientists design method to improve small landholders’ access to biodiversity credit markets
Scientists in Australia have developed a biodiversity monitoring method tailored to small landholders seeking to access the voluntary biodiversity credit market.
African alliance launches programme to mobilise $10 mln in nature-based solutions
The African Natural Capital Alliance (ANCA) has launched an initiative seeking to channel $10 million towards nature-based solutions over the next three years in collaboration with the Global Biodiversity Framework Fund (GBFF) among others.
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EVENTS
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
Eurelectric’s Power Barometer 2024 – October 3, Brussels: Over the past five years, the power sector has faced unprecedented challenges among the COVID-19 pandemic, the energy crisis, and mounting competition from China and the US. With new policymakers taking office, political attention is now on energy independence, industrialisation, competitiveness, and the ongoing climate battle. Eurelectric Power Barometer 2024 data report will take stock of these developments with DG ENER Director General Ditte Juul Jorgensen, MEP Niels Fuglsang, and SSE Managing Director Sam Peacock. Make sure to join them at our free launch event! Register here
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
EMEA
Insure it already – Global temperatures continue to rise, leading to severe weather events and increasing economic and infrastructural damages, of which only a quarter have historically been insured in the EU. In response, the European Commission initiated a Climate Resilience Dialogue in Nov. 2021 to explore ways to reduce the climate protection gap and enhance climate resilience across the EU. This dialogue, involving various stakeholders from public authorities to the insurance industry, culminated in a final report in July 2024. The report recommends enhancing climate risk awareness, improving risk assessments, and promoting public-private partnerships in insurance. It also details actionable strategies to address specific climate-related risks like floods, wildfires, and heatwaves. These proposed actions are intended for implementation by various stakeholders to bolster individual and community resilience against climate challenges. The Commission plans to consider these findings to bolster climate preparedness and resilience in its future strategies, emphasising the collective responsibility to address climate-related risks.
Shell LNG deal with Turkey – Shell has signed a 10-year LNG supply deal with Turkey, which includes the option to redirect cargoes to European terminals. Under the deal, Shell will sell Turkey’s state-owned Botas around 4 bcm of gas per year as of 2027, Energy Minister Alparslan Bayraktar said, or about 8% of the country’s total gas demand. Turkey aims to become a gas hub for Europe and has invested in excess LNG import capacity as well as domestic production in the Black Sea. However, flows to Europe are currently constrained by the capacity of a pipeline at its Western border, with Bulgaria. (Bloomberg)
EU’s sluggish green recovery fund – The European Court of Auditors (ECA) issued a report on Monday assessing the performance of the EU’s €724 bln Recovery and Resilience Facility (RRF) adopted in the wake of the Covid-19 crisis. The RRF centres on six priority areas, with 37% of the funding dedicated to the green transition. Countries can receive the money based on progress made. But with only two years left before the scheme expires in August 2026, the auditors found that EU countries have drawn less than a third of the planned funds and made less than 30% progress towards their pre-defined targets. “There is a risk that not all planned measures will be completed in time,” ECA warned. The Commission, meanwhile, defended its track record, saying the RRF is yielding concrete results on the ground. “We have seen funding for energy efficiency, renewable energy, and digitalisation projects like never before,” it said in a statement. (European Court of Auditors)
EU-Angola green trade deal – The EU-Angola Sustainable Investment Facilitation Agreement (SIFA) entered into force on Monday, aiming to stimulate foreign direct investments in the African country. SIFA seeks to promote trade in products such as green energy, agri-food value chains, digital innovation, fisheries, logistics, and critical raw materials, the European Commission said in a statement. Article 32 relates to investment and climate change while Article 33 says the parties “recognise the importance of conserving and sustainably using biological diversity and the role of investment in pursuing these objectives”. The two sides will now work together to implement the agreement, the Commission said, adding that the EU will provide Angola with technical support on that front.
CCS delay – A project aiming to connect Germany’s Rhine-Ruhr industrial heartland to an undersea carbon storage project in the Dutch North Sea looks set to be set back by years, jeopardising a key part of the country’s decarbonisation plans, reports Die Welt. The delay has been ascribed to technical complexity, planning, and approval procedures taking longer than planned. Construction on the Porthos, a billion-euro mega project in Rotterdam port to store carbon from heavy industry, officially began Monday. But the planned Delta Rhine corridor pipeline that Germany would use to import hydrogen and pump CO2 the opposite direction to be permanently stored in depleted gas fields 20 km off the coast won’t be operational until at least 2032, four years later than planned. (Clean Energy Wire)
Not a popular move? – UK Prime Minister Keir Starmer’s ambition to move the UK to 100% clean power by 2030 is a “vast undertaking”, calling for investments in the hundreds of billions of pounds, writes Politico. Doing so will require bulking up the country’s grid, overhauling planning, and attaching carbon capture to the UK’s squadron of gas plants. Questions are already being asked about the influence of Starmer’s “mission control” unit for delivering on the 2030 ambition in Whitehall’s corridors of power. The mission control team reportedly lacks actual decision-making power, and there are also concerns that the clean power shift will ultimately prove unpopular with voters.
Accelerate me – The UK’s Net Zero Technology Centre (NZTC) on Tuesday announced the opening of applications for the 2025 cohort of its TechX Clean Energy Accelerator. This initiative offers startups worldwide the chance to join the programme and compete for a share of £500,000 in grant funding, with individual awards up to £50,000. The TechX Accelerator aims to scale promising clean energy startups by providing expert mentorship, technology development guidance, and support for commercial growth. Participants will gain access to an extensive network that includes advisors, investors, energy operators, and the supply chain. The programme is targeting startups at Technology Readiness Level (TRL) three to six, focusing on technologies like CCUS & methane capture, low-carbon hydrogen, alternative fuels, and renewable energy. Since its inception, the TechX Clean Energy Accelerator has supported nearly 70 startups, which have collectively raised over £106 mln in equity and generated £27.3 mln in revenue. These companies are on track to potentially save 20-25 Mt of CO2e annually by 2030. Applications for the next cohort are open until Oct. 27, with kick-off in early 2025.
ASIA PACIFIC
Broader ties – South Korea’s industry ministry has signed a Memorandum of Understanding (MoU) with the state of Western Australia to pursue broader ties in the sectors of clean energy and key minerals, according to Yonhap. The two parties will seek progress in cooperation in the energy sector, including key minerals, hydrogen, carbon capture and storage, as well as renewable energy.
Rice project – Japan’s Suzunari and Kumiai Chemical Industry have decided to create domestically issued carbon credits by extending the drainage of rice paddies in Shizuoka Prefecture, they announced Monday. The rice project, having registered with the J-Credit programme, has also received support from government-backed agricultural lender Norinchukin Bank.
Climate champions – Four Indian organisations have been selected among recipients across the Asia Pacific region for grants under the APAC Sustainability Seed Fund 2.0, the Economic Times reported. The fund, backed by a $5 mln grant from Google.org and Asian Development Bank (ADB), aims to empower organisations across the region to develop climate solutions. The selected Indian organisations – INREM Foundation, CEPT Research and Development Foundation (CRDF), Institute for Financial Management and Research (WELL Labs), and Gujarat Mahila Housing Sewa Trust (MHT) – will utilise artificial intelligence and technology to tackle water security, urban heat, and carbon sinks. While INREM Foundation will develop AI-enabled open digital solutions to help community representatives access data on water contamination, CRDF will use machine learning and satellite imagery to make it easy to estimate how much carbon lakes can absorb. As well, WELL Labs will unlock multiple foundational datasets and make them easily accessible, providing granular insights into water security challenges. Lastly, MHT will develop an AI-powered model to identify urban heat islands and suggest targeted community-centric solutions like cool roofs and routes.
New cookstove plant – India’s EKI Energy Services has set up a new clean cooking manufacturing unit in Nairobi, Kenya, in collaboration with a local manufacturer, it said in a release. By producing and distributing improved cookstoves, the project aims to reduce reliance on traditional biomass fuels, which are linked to deforestation, environmental degradation, and health hazards. The new manufacturing facility will enhance the firm’s production capabilities. Currently, the company’s plant in Nasik, Maharashtra, boasts a production capacity of up to 4 million cookstoves annually. The Nairobi unit is expected to play a crucial role in distributing 500,000 cookstoves across Eastern Africa in the first year, with plans to extend distribution to other regions of the continent.
Timor takes stake – The national oil company of the world’s newest democracy has moved to take a stake in its legacy gas field. Timor Gap has taken a 16% interest in the Bayu Undan gas fields which have contributed billions of dollars to Timor-Leste’s sovereign wealth fund. The field’s operator Santos told the Australian stock market Monday the partners had executed a Sale and Purchase Deed, as well as a seventh extension of the production sharing contract that governs royalties Timor-Leste earns from its resource. The end-of-life field no longer supplies gas to be turned into LNG at a plant in Darwin, but continues to supply the domestic Australian market. Santos plans to turn the field into a carbon capture and storage facility in the future.
Wind and sun – The Australian government has declared the Bunbury offshore wind zone in Western Australia, demarcating an area that could host some 11.4 GW of renewable wind energy, it announced Monday. The zone is around 50% smaller than the original zone put forward by the government, and is further offshore to minimise visual impact, after it consulted with local community and First Nations groups. Interested parties can now apply for feasibility licences, the next step in the project approval process. On the same day, the Australian Renewable Energy Agency launched a A$550 mln ($373 mln) funding round for its Solar Sunshot programme, designed to support innovation in Australia’s solar pv industry. Round 1A, consisting of A$500 mln, will focus on modules, inputs to modules, and deployment systems, while Round 1B will fund solar PV manufacturing studies, consisting of A$50 mln.
Done deal – Australia oil and gas company Santos announced the Bayu-Undan Joint Venture and Timor Gap have agreed terms of a sale and purchase deed to transfer a 16% interest in the Bayu-Undan upstream project to Timor Gap, as of July 1, 2024. As of the new interest arrangements, Santos will have a 36.5% interest, while South Korea’s SK E&S will hold a 21% interest and Japan’s Inpex, Eni, and Tokyo Timor Resources will hold a 9.6%, 9.2%, and 7.6% interests respectively. Santos said it remained committed to working with the Timor-Leste government and the JV to repurpose the gas field into a large-scale commercial CCS hub once hydrocarbon production ends.
VOLUNTARY
Neo lab – NeoCarbon, a German startup specialising in DAC, has launched a new chemical laboratory in Berlin to advance its development of sorbents for CO2 capture. Co-founder Silvain Toromanoff highlighted the lab’s role in positioning NeoCarbon as a leader in scalable and efficient DAC solutions. The facility enables the testing and optimisation of sorbents under various conditions and supports scale-up production. The lab’s versatile equipment can handle sorbent samples ranging from one gram to one kilogram. Additionally, NeoCarbon aims to integrate its technology with existing industrial infrastructures, such as smokestacks, and initially focuses on reducing emissions from cement plants. The opening follows a successful €3.2 mln funding round and a partnership with UK-based Cool Planet to combine their technologies for enhanced CO2 capture. (Carbon Herald)
INVESTMENT
Scope 3 insights – Swedish pension fund Fjarde AP-fonden (AP4) is working to integrate companies’ Scope 3, or value chain emissions, into its investment decisions, as part of its pledge to halve the emissions of its investments by the end of the decade, compared with 2020 levels. AP4 plans to have an entirely net zero portfolio by 2040. The Scope 3 information will add to its existing assessment of a company’s temperature trajectory and the impact a carbon price would have on its financial performance.
AND FINALLY…
Victim of fashion – Less than 4% of brands that are members of the British Fashion Council have published climate targets, according to new analysis. Only seven brands – 3.39% of the total – have publicly declared any emissions reduction goals, while only five set targets that are aligned with the Paris Agreement, found the analysis, conducted by Collective Fashion Justice (CFJ). The five are: Rixo, Mulberry, Margaret Howell, Kyle Ho, and Burberry. (edie.net)
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