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TOP STORY
FEATURE: Carbon projects with hard currency needs face FX risk
Fluctuations in foreign exchange (FX) markets affect emerging economies engaged in the voluntary carbon market (VCM), and can threaten proponents’ access to finance, even as sustainable development projects continue to rely on outside hard currencies.
AMERICAS
RGGI auction races to another record clear with strong compliance bid
The Q3 RGGI auction cleared at a new all-time high, with compliance buyers scooping up two-thirds of the permits offered, results posted Friday showed.
Producers slash holdings across North American carbon markets, financials build CCA and RGGI net length
Financial entities continued to boost V25 California Carbon Allowance (CCA) holdings at the expense of V24 net length, while emitters cut holdings across North American carbon markets over the week ahead of third quarterly RGGI and Washington permit sales, according to data from the US Commodity Futures Trading Commission (CFTC).
US fossil fuel industry reports results of methane emissions reduction efforts
An annual report by a network of US oil and gas companies detailed results from the group’s methane emissions reductions measures, revealing that participation was not identical across its membership.
US forest management firm’s 2023 CO2 removals surpassed emissions by almost 600%
A US forest management company reported that its forests removed nearly seven times more CO2 than it emitted in 2023, although overall removals decreased in comparison to previous years.
US green methanol tech company lures $4.5 mln investment
A US company developing a method for converting CO2 into green methanol closed a $4.5 million seed financing round this week that will help the company accelerate its technology to pilot stage.
US EPA cracks down on illegal HFC usage, imports with new enforcement alert
The US EPA on Friday issued a new enforcement alert, stepping up efforts to combat illegal imports and usage of hydrofluorocarbons (HFCs) – potent greenhouse gases used in refrigeration and air conditioning systems.
VOLUNTARY
VCM MONTHLY DATA: Olympics lift August voluntary carbon retirements to break seasonal trend
Credit retirements across the four main registries in the voluntary carbon market saw an unseasonal boost in August, driven by strong retirement activity from the Paris 2024 Olympic and Paralympic Committee.
Corporate greenwashing unevenly hits share price of offenders, study finds
Attempts at corporate greenwashing will eventually hurt the financial bottom line of companies in the long run, but offenders are still getting away with it in too many jurisdictions, according to research published this week.
Investors should start with materiality when addressing Scope 3 emissions -report
Financiers should adopt a materiality-based approach when addressing the Scope 3 emissions of assets, according to a report published this week.
Researchers urge revised carbon crediting methods to better protect high-risk forest areas
Researchers this week raised concerns about the efficacy of current carbon crediting methods for high-forest, low-deforestation (HFLD) jurisdictions, suggesting that a shift towards more predictive models is necessary to better safeguard these critical forested areas.
Indian developer signs Ghana deal for Paris-aligned cookstoves carbon project
An Indian developer has partnered with the government of Ghana and a Singapore-based asset management fund for the production and distribution of 1 million improved cookstoves across the African nation over the next five years, the company announced this week.
AI could expand access to carbon markets for sustainable rice farming, says report
Artificial intelligence (AI) holds the potential to lower barriers to accessing carbon finance for sustainable rice projects, according to a new report.
Former Gabon environment minister beefs up board of CTrees
Lee White, the former environment minister of Gabon in central Africa who was briefly placed under house arrest in August last year amid a miliary coup, has been appointed to the board of directors of CTrees.
EMEA
Germany rejects 215,000 emissions reductions units from eight projects in China
The German Federal Environment Agency (UBA) has rejected 215,000 tonnes of new emissions reduction certificates from eight upstream oil and gas projects in China due to “irregularities”, it announced on Friday.
Higher emissions and EU carbon prices if no CBAM solution is found for UK power exports to EU -analysts
EU emissions and carbon prices could rise as a result of the bloc’s Carbon Border Adjustment Mechanism (CBAM), causing a reduction in power flows from the UK to the EU, according to scenarios modelled by an energy analytics firm.
Poland aims for 56% renewables in electricity mix by 2030
Poland will aim for a 56% share of renewable energy in its electricity mix by 2030, according to the climate ministry, who announced a new target was revealed in the draft of the National Energy and Climate Plan (NECP) this week.
Analysts propose carbon clearing house to support integration of carbon removals in UK ETS
In response to a recent consultation on integrating carbon removals in the UK ETS, analysts at a non-profit have called for the establishment of an intermediary institution, such as a ‘Carbon Clearing House’, to streamline the market for suppliers and buyers, and to provide greater control over the portfolio and scale of removals being developed in the country.
Euro Markets: EUAs post largest weekly drop in six months despite ending three-week losing streak
European carbon prices snapped a three-day losing streak Friday, though robust morning gains in line with gas and power were rapidly unwound in the afternoon amid strong selling interest, leaving the EU market with its largest weekly loss since the end of February.
ASIA PACIFIC
Indonesia targets 367 GW of renewable energy by 2060, as draft second NDC deemed insufficient
The Indonesian government has outlined plans to target 367 GW of renewable energy capacity by 2060, as analysis found its draft second Nationally Determined Contribution (NDC) to be lacking in ambition.
CN Markets: CEAs moves near 93 yuan, weekly trading volume stable
Chinese carbon allowance prices saw a modest recovery over the past week with stable trading volumes, as analysts remained cautious about the whole-year price outlook due to a newly introduced policy.
Australian Senate committee recommends passage of Future Made in Australia Bill, despite design concerns
An Australian Senate cross-party committee has recommended the Future Made in Australia (FMIA) Bill be passed, which would unlock close to A$23 billion ($15 bln) over 10 years to support clean energy and critical minerals development.
New Zealand startup launches funding round to bring Scope 3 emissions reporting software to Australia
A New Zealand climate tech startup has launched a seed round of NZ$650,000 ($400,000) in the hopes of expanding its Scope 3 emissions reporting software into Australia, and eventually the UK.
Japanese carbon project developer seeks offset development opportunities in Mongolia
A Japanese carbon project developer has expressed interest in pursuing emissions reduction projects in Mongolia, as it seeks to expand its presence in Asia.
AVIATION
INTERVIEW: Navigating the imminent CORSIA carbon credit supply crunch
As the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) entered its first phase in 2024, airlines are grappling with an imbalance in the supply and demand of carbon credits – a challenge that could well continue into the second phase, according to one expert.
BIODIVERSITY (FREE TO READ)
British govt lobbied to cut biodiversity net gain exemptions
Eight NGOs and business groups sent a letter to the British government on Thursday asking for the removal of some developer exemptions from the biodiversity net gain (BNG) requirements in England.
Forest biodiversity unit pilot launches in Congo
A pilot in the Republic of Congo that aims to generate climate and biodiversity units under the High Integrity Forest Investment Initiative (HIFOR) has been launched by a US-based NGO.
Wetland restoration project in Italy to sell biodiversity tokens, two European companies to buy
A wetland restoration project in Italy is set to generate the first batch of tokenised biodiversity credits, with two large European companies ready to buy them, Carbon Pulse has learned.
Experts call for COP16 to address Amazon crimes destroying nature
Experts on the Amazon have urged action from politicians at the COP16 conference to combat the policies fuelling demand for products from activities like gold mining that are driving biodiversity loss.
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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. Organised 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
INTERNATIONAL
First in line for COP – The UN climate change body has said it will assign a larger share of attendance badges for COP29 to non-profits from developing countries in a bid for more diverse voices at the annual climate summit. Half of all observers at COP28 in Dubai last year came from a bloc of Western European nations, the US, Canada, and Australia, even though countries in that group represent only 12% of the world’s population. Writing to observers this week, UNFCCC Executive Secretary Simon Stiell said “we need the COP process and participation to reflect the fact that the climate crisis is hitting communities in every part of the world”. However, some Global North groups, have been stunned by the scale of the changes, and have sent a letter to Stiell explaining that many organisations headquartered in the Global North provide badges to colleagues based in developing countries. The letter calls on the UNFCCC to revisit the quota allocation for COP29 and provide transparency in the process. The scale of COP29 in Baku is expected to be much smaller than last year’s in Dubai, with around 40,000 people expected this year, versus over twice that who attended in Dubai. (Climate Change News)
Common ground – John Podesta, US climate envoy, said the US and China have “some differences” on issues such as climate finance but have made progress in addressing them during talks this week, NBC News reported Friday. Podesta told reporters that despite some tension in their bilateral relationship, the countries can find places to collaborate on climate issues following meetings with his Chinese counterpart, Liu Zhenmin, and Wang Yi, foreign minister of China. The two sides had “excellent discussions” on the upcoming COP29 climate talks, said Podesta. However, experts said there weren’t many expectations from this week’s round of talks, given the uncertainties about the outcome of the US presidential election. Both the Democrats and Republicans have released party platforms, detailing their priorities regarding climate, energy, and the environment in case their respective presidential picks take office following the November election.
Meat and dairy emissions – Reducing over-consumption of meat and dairy products across the world could cut global food emissions by 17% annually, according to new research published in Nature Climate Change. Global food-system emissions could even be cut by 32%, if consumers in countries with high dietary emissions replaced red meat and milk with legumes and nuts, according to the research. “More than half (56.9%) of the global population, which is presently over-consuming, would save 32.4% of global emissions through diet shifts, offsetting the 15.4% increase in global emissions from presently under-consuming populations moving towards healthier diets,” the paper said. (Carbon Brief)
Shared lessons – Guinea has joined the Global Carbon Pricing Challenge, signalling its support for global and domestic carbon pricing, it was announced on Friday. The GCPC is a global initiative aiming to cover 60% of the world’s emissions with carbon pricing by 2030, and the West African country has joined as a Friend of the initiative, following in the footsteps of its neighbour Cote d’Ivoire, which joined in 2023. Friends of the GCPC support the challenge’s goals and objectives and have a clear interest in explicit carbon pricing domestically or internationally. The GCPC was launched at COP26 by Canada and aims to facilitate a platform for sharing lessons learned on carbon pricing. Guinea committed in 2022 to preserving nearly 30% of its natural resources by 2030, and has set a NDC target of 20% unconditional and 49% conditional reduction in GHG emissions by 2030. Guinea joins existing Partners Canada, Chile, Denmark, the EU, France, Germany, Kazakhstan, New Zealand, Norway, Republic of Korea, Sweden and the UK, and Friend Cote d’Ivoire.
EMEA
Moor support – Germany has issued two sets of funding guidelines to restore peatlands as part of a €3.5bn Natural Climate Protection Action Programme. From 16 September, the Ministry of the Environment will accept applications for the “1,000 Moors” and InAWi (information, activation, control and support of measures for the rewetting of moorland) programmes. Wet moors store water, bind carbon and contribute to the preservation of biodiversity, said environment minister Steffi Lemke in a press release. Today, drained moors are more likely to emit greenhouse gases than absorb them, the ministry added. Moors emit around 54 million tonnes of CO2-equivalent, or about 7% of Germany’s greenhouse gas emissions in 2022. Voluntary rewetting by owners and managers is intended to halt drained peatland emissions and, insofar as possible, enable moors to absorb carbon again. No emissions credits are associated with funding under the new guidelines published on Thursday, a spokesperson for the ministry told Carbon Pulse. The Carbon Removal Certification Framework (CRCF) adopted at EU level in spring provides for the certification of peatland rewetting, they added. The specific framework conditions for this are currently still being developed.
Say cheese – A Danish state aid scheme, approved by the EU Commission, will support a more climate-friendly dairy production with a budget of approximately €53 mln. This initiative should contribute to meeting the national binding reduction target of reducing GHG emissions from the agricultural and forestry sectors. Farmers who commit to further reduce methane emissions beyond the mandatory standards can also receive additional aid. The scheme will run until Dec. 31, 2027 and will be open to dairy livestock farmers in the country, in the form of direct grants covering up to 100% of eligible costs.
Russian registry – A new amendment will come into force on Sep. 9 pertaining to the Russian registry of carbon units. It specifies that activities within a climate project must be carried out in the presence of economic conditions for using the results of project implementation; that the deadlines for the start of project activities and the crediting period have been limited; that the list of documents and information to be submitted for project validation has been extended; and the form of the report on the implementation of climate projects has been adapted. Further details here.
Dutch ditch nitrogen policy – The new Dutch government is abandoning its predecessor’s plans to address a persistent excess of nitrogen emissions that contravenes EU environmental law. Instead, agriculture minister Femke Wiersma, a member of the BoerBurgerBeweging (BBB), or Farmer-Citizen Movement, may explore a derogation for the Netherlands. Almost half of nitrogen emissions come from agriculture, mainly livestock. The previous government’s National Programme for Rural Areas (NPLG) foresaw provinces deliver a reduction in livestock farming. Since cows are also the biggest methane emitters, this could curb agriculture’s climate impact at the same time. The Dutch association for construction and infrastructure blasted the new government’s decision as “shocking”: despite a housing shortage, it has been very difficult for building projects to get environmental permits because there is no headroom for the nitrogen emissions of construction machinery.
ASIA PACIFIC
Clean grid – Singapore has announced plans to increase its renewable energy import target to 6 GW by 2035, up from the previous target of 4 GW, The Strait Times reported. Electricity imports are expected to make up around one-third of the country’s energy needs by 2035. Singapore currently relies on natural gas for around 95% of its electricity generation, with the power sector making up around 40% of its overall GHG emissions. The Energy Market Authority said it updated the targets based on strong interest from parties to participate in electricity import projects, and to ensure adequate supply to meet future demand.
Goodbye – South Korea’s biggest coal mine, Jangseong Coal Mine, formally closed Friday, as coal output declined with the nation shifting toward greener energy sources, according to the Korea Times. Run by state-run Korea Coal Corp, the Taebaek-based coal mine began operations in 1936 during Japan’s colonial rule of the Korean Peninsula and went on to produce 94 mln tonnes of coal. In order to revitalise the region, the municipal government now seeks to establish production facilities for clean methanol at the site.
AMERICAS
2023 crude CI – California regulator ARB on Friday posted the 2023 average crude carbon intensity (CI), valued at 12.51 gCO2e/MJ – down 1.6% from the 2022 average. The agency is accepting comments related to potential factual or methodological errors in the calculation until Sep. 23.
Foresters weigh in on offsets – The US forestry association, Society of American Foresters (SAF), is taking a stand on forest-based offsets. In a statement posted Thursday, the SAF board signalled support for forest offset projects that meet stringent criteria for permanent and additional carbon storage. However, the board’s statement stressed that, while forest management plays a key role in carbon sequestration, “forest carbon cannot be maximised at the expense of other essential services provided by forests”. The SAF called for additional research into methodologies that consider wood-based carbon storage along with forest ecosystem resilience.
VOLUNTARY
Over-cooked – The Washington Post this week published a feature on C-Quest Capital, the problems faced by its clean cookstove projects, and the accusations levied against its former CEO Ken Newcombe. The article reveals the shortcomings of a voluntary carbon project in Mozambique that distributed simple cookstoves. The newspaper found that the stoves were poorly designed, unreliable, and often failed. Many households received the stoves but later discarded them, as they were prone to damage from rain and emitted large amounts of smoke when used indoors, increasing health risks. The project’s implementation also lacked proper oversight and maintenance, and the usage of the stoves was significantly lower than claimed by C-Quest, thus raising questions over the validity of the carbon credits issued. Furthermore, C-Quest faces allegations of issuing millions of overestimated offsets, with Newcombe accused by the company of wrongdoing. Newcombe has denied all accusations, calling them a plot by a private equity to seize control of the firm. These issues have also led to the suspension of several projects, including the one in Mozambique. WaPo also highlights broader concerns about the integrity of the VCM, especially in cookstove projects, which are seen often suffering from limited transparency, lax monitoring, and the pressure to keep costs low.
Applaud don’t criticise – Carbon offsetting should be applauded not criticised, argues a letter published in the FT by Rich Gilmore, CEO of Carbon Growth Partners. He points out that currently 97% of global GHG pollution goes unabated and unpunished, while the other 3% is offset through market-based approaches that the Paris Agreement refers to as “voluntary co-operation”. “If we want that number to grow, the 3% of companies who already do the right thing by co-operating should be applauded, and the 97% who take no action should be condemned. The FT seems determined to thwart climate action by doing it the other way around,” he wrote.
Bamboo listing – A carbon agroforestry project in Ethiopia by African Bamboo has been listed on carbon credit registry Verra, a LinkedIn post said. The project focuses on planting Yushania alpina (highland bamboo) along with native indigenous species to create dynamic community-led agroforestry across tropical Afromontane highland ecosystems. It will implement afforestation activities over an initial 20 hectares before expanding across 12,120 ha to restore degraded and deforested land in Ethiopia while providing essential ecosystem services such as increased climate resilience, soil stability, and water flow regulation.
SCIENCE & TECH
Warmest ever summer, again – The planet’s northern hemisphere experienced its warmest ever summer since records began, the EU’s Copernicus Climate Change Service (C3S) said in its monthly bulletin, published on Sep. 6. “The average temperature European land for summer (June–August) 2024 was the highest on record for the season at 1.54C above the 1991-2020 average, exceeding the previous record from 2022 (1.34C),” Copernicus said. Globally, August 2024 was the joint-warmest August on record, with August 2023. Since January, global temperatures were on average 0.70C above the 1990-2020 average, or 0.23C warmer than the same period in 2023, which is the warmest year on record. (Copernicus, Reuters)
SHIPPING
Shipping partners – Malaysia Marine and Heavy Engineering (MMHE) has partnered with HD Hyundai Marine Solutions (HD HMS) to advance maritime decarbonisation through green retrofits, in order to meet stringent regulatory standards such as the EU ETS and IMO’s Energy Efficiency Existing Ship Index. By collaborating with HD HMS, MMHE aims to use advanced technologies to help vessel owners meet compliance standards while reducing their carbon footprint, said a statement on Friday. The partnership forms part of MMHE’s broader strategy to enhance its service offerings in response to the growing need for sustainable maritime operations.
AVIATION
Busy skies – Airspace inefficiencies lead to significant and unnecessary increases in fuel consumption, CO2 emissions, and flight times across Europe, according to new analysis conducted by EasyJet. The airline used AI to analyse and model the carbon impact resulting from airspace inefficiencies across all of its flights over the past 12 months, and found that it could achieve a more than 10% reduction in emissions through airspace modernisation. Countries with the greatest need for improvement were found to be the UK, Italy, France, Spain, and Switzerland. The descent phase in particular was found to be inefficient due to poorly designed lower airspace near airports. EasyJet calls for reform to modernise airspace and harness these huge efficiency gains on offer. (webwire.com)
AND FINALLY…
Oh those Russians – Tenet Media, the US conservative media outlet facing allegations of Russian-funded propaganda, is also a primary vector for climate disinformation, E&E reports. The company isn’t named in the sweeping indictment that the Department of Justice released Wednesday. But the document alleges that two employees of RT, a Russian state media company, sent $10 mln to an unnamed Tennessee-based company that uses the same slogan as Tenet. Multiple media outlets have also confirmed that the company is Tenet. It is a publishing platform for far-right conservative influencers, including Tim Pool and Benny Johnson. Both have a long history of producing content that denies, mocks, and downplays climate policy, including during the time that DOJ alleges their work was supported by secretive Russian funding. Neither has been accused of a crime and both wrote on social platform X to their millions of followers that they were “victims” and did not know about the Kremlin’s involvement.
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