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TOP STORY
ANALYSIS: Talk isn’t cheap at the US presidential debate, as perceived risks shape compliance carbon markets
The first high-stakes US presidential debate between a swapped Democratic nominee and a Republican contender barely addressed environmental policy, yet some traders are factoring in potential volatility in compliance carbon markets before and after the November elections, adjusting positions based on perceived risks or opportunities.
INTERNATIONAL
World Bank heralds gains in carbon pricing across emerging economies despite political, economic risks
Carbon pricing is gaining momentum in developing nations despite political and economic risks, according to a report published by the World Bank Wednesday.
VOLUNTARY
BRIEFING: Carbon removals facing a price roller coaster as demand outstrips supply
The high price of carbon removal credits is set to spike before it declines, as new government policies help to drive more buyers to the nascent market, according to speakers at the Carbon Unbound Europe conference on Wednesday.
DATA DIVE: Voluntary carbon projects have become better for biodiversity over time
Nature-based voluntary carbon projects are becoming increasingly beneficial for biodiversity, according to new data from AlliedOffsets that has been shared with and analysed by Carbon Pulse.
Major airline finalises deal to purchase carbon removals
A major airline has finalised a deal to purchase CO2 removal (CDR) credits as the hard-to-abate sector ramps up efforts to meet net zero emission targets.
Clean cooking carbon project developer sells all credits through 2024 at $35/t
A clean cooking project developer has sold all of its carbon credits of a vintage through 2024 at $35 per tonne, its CEO told an event Wednesday, in a sign that demand for ‘high-quality’ units is there for the voluntary market.
DAC developer signs $3 mln engineering agreement for Louisiana project
A direct air capture (DAC) developer on Wednesday announced a $3 million phased commercial agreement with global partners to launch engineering studies and potentially supply CO2 removal (CDR) credits from a Louisiana project.
Irish farmers and landowners targeted for forestry carbon credit revenue
One of the largest forestry management firms in Ireland has teamed up with the country’s first certified carbon management company to sell credits in the voluntary market.
European verifier seeks comments for new modular BiCRS methodology
AMERICAS
Second lowest clearance ever at Washington’s Q3 allowance sale
Washington’s Q3 current vintage auction settled nearly $3 below front-month futures prices in the secondary market the day prior to the sale, with buyers recoiling from the uncertainty surrounding the future of the state’s carbon market.
Iowa politicians ramp up opposition to CO2 pipeline
County supervisors in Iowa on Tuesday condemned the use of eminent domain for a proposed CO2 pipeline, while state Republicans announced plans to challenge the project’s approval.
ARB tempers offset issuance, continues to lag behind 2023 totals
California regulator ARB reduced its compliance-eligible offset issuances over the latest two-week period, reversing course from the trend of growing distributions seen in past periods.
Alberta invests C$2.8 mln to design waste-to-energy with CCS prototype
Alberta is investing C$2.8 million ($2.1 mln) to help design a municipal waste-to-energy facility with a carbon capture addition, the provincial government announced Tuesday.
Yucatan releases guidelines for nature-based carbon project developers
Mexico’s Yucatan released guidelines Wednesday detailing best practices for developing voluntary carbon market (VCM) projects within the state, placing a heavy emphasis on ensuring that local communities and ejidos are the primary beneficiaries of nature-based projects.
EMEA
Brussels aims to rubber-stamp carbon removals framework by year’s end
The European Commission expects to formalise its Carbon Removals and Carbon Farming (CRCF) regulation by the end of this year, giving it the legal basis on which to set certification methodologies for the first batch of removal techniques next year, a Brussels official confirmed on Wednesday.
EU announces research project to assess impact of CBAM on its neighbours
The European Commission has announced fresh funding for a research project that explores the impact of the EU’s Emissions Trading Scheme (ETS) and Carbon Border Adjustment Mechanism (CBAM) on neighbouring countries.
Germany unveils long-awaited tender plans for new gas power plants
The construction of 5 GW and modernisation of 2 GW of “hydrogen-ready” gas power plants could start being put out to tender in Q1 2025, the German government announced with a consultation launched on Wednesday.
EU stocktake sees energy security improve, warns of poverty uptick
Despite an uptick in energy poverty, the EU is on track to ensure energy security, according to the European Commission’s latest annual assessment looking back at what has been achieved over the past year.
New lawmaker appointed to lead EU directive on green corporate claims
A new member of the European Parliament from the left-wing Socialists and Democrats group (S&D) has been appointed to lead negotiations on the EU’s Green Claims Directive, which aims at tackling greenwashing and sets rules for the corporate use of voluntary carbon credits.
INTERVIEW: EU’s aluminium industry heavily reliant on electricity to decarbonise
The EU needs a lot more renewable and low-carbon electricity and it needs it “ASAP”, according to Paul Voss, director general of industry association Europe Aluminium, adding to a growing chorus of voices calling for lower energy prices to boost the bloc’s competitiveness.
Euro Markets: EUAs rally 2.3% as increase in funds’ net short triggers renewed buying
European carbon prices rallied on Wednesday morning as weekly positioning data showed that investment funds more than doubled their net short positions last week, triggering a rally as traders looked to test the conviction of bearish bets.
Climate spending under EU pandemic fund likely over-estimated, auditors say
The EU’s pandemic recovery funds contribution towards climate action and the green transition is likely over-estimated by at least €34.5 billion, the European Court of Auditors (ECA) said on Wednesday.
Drax urges BECCS support as critical to meeting UK clean power goal by 2030
Drax is looking to the UK government to begin discussions soon on a contract to support the company’s incoming bioenergy with carbon capture and storage (BECCS) project, to ensure that the plant can contribute to the country’s goal for clean power by 2030, a Drax official said on Wednesday.
UK businesses show varied progress towards net zero -survey
A UK survey on corporate net zero progress found that 73% of respondents consider achieving net zero a medium- or high-priority over the next year, only 65% have committed to the 2050 target, and just 48% have set net zero goals to be met within the next decade.
ASIA PACIFIC
Japanese oil major backs country’s first programme-based carbon project in pig farming
A top refiner in Japan has decided to support the country’s first carbon credit generating project featuring collaboration with domestic pig farmers.
China clarifies rules to avoid double counting of environmental values from renewable projects
Chinese regulators have announced rules that can clarify the boundaries of the country’s green electricity and national carbon offset markets, a move designed to help avoid double counting of environmental attributes.
SK Market: September auction oversubscribed, though clearing price still below $7.50
South Korea’s latest monthly CO2 permit auction was oversubscribed with the clearing price still below the 10,000 won ($7.43) benchmark, while the price outlook may remain bleak in the absence of policy updates.
CME releases details of upcoming ACCU futures contract
Global trading house CME Group has provided details of its Australian Carbon Credit Units (ACCUs) futures contract, adding to the sole such offering currently available in the market, from the Australian Securities Exchange.
Australian states announce forestry, Indigenous ACCU initiatives
Western Australia and New South Wales have announced initiatives to support projects that will earn Australian Carbon Credit Units (ACCUs), with a focus on forestry and Indigenous environmental plantings (EP) projects.
Australia releases battery consultation paper prior to funding round open
Australia has released a consultation paper for entrants to the wide scale battery industry and value chain the nation hopes to build in a bid to further its ambitions as a renewable energy and battery superpower while reducing emissions.
BIODIVERSITY (FREE TO READ)
Natural capital investments could pass $1 trln within two decades, financier says
Total investments in the natural capital asset class could rise to $1 trillion or more over the next two decades, on the back of revenues from outputs including biodiversity markets, investor New Forests has said.
Australian govt earmarks A$215 mln for species protection, habitat restoration
The Australian government has ringfenced over A$215 million ($143 mln) to ramp up efforts in nature restoration and native species protection, it announced Wednesday.
Brazilian carbon developer to market Indigenous-focused biodiversity credits at COP16
A Brazilian carbon developer and two organisations working with Indigenous communities are piloting a biodiversity credit project in the Amazon state, with two European companies interested in purchasing units after COP16, Carbon Pulse has learned.
Experts call for robust targets in Scottish nature bill
Scotland urgently needs strong targets to ensure impact in its forthcoming nature bill, covering areas ranging from habitats to species, experts said during a webinar on Wednesday.
Scottish farmers need more detail about transition to nature-friendly farming as new legislation comes into play -webinar
There are still many unknowns about what will be required of farmers under an agricultural bill passed by the Scottish government in June, including on the incentives for woodland creation and peatland restoration, a trade body representative told a webinar on Wednesday.
SBTN releases draft guidance on first science-based ocean targets
The Science Based Targets Network (SBTN) has put out for consultation draft guidance on the first scientific targets for ocean impacts, ahead of the full roll out in 2025.
UPDATE – Tech firm delays launch of biodiversity credit framework due to market uncertainties, completes seed funding round
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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
Austrian wind – The European Investment Bank is financing the construction of a new wind farm in Lower Austria with an initial loan of €20.1 mln to WEB Windenergie AG. The wind farm in the municipality of Spannberg is the fourth of its kind and will include a total of 11 wind turbines. An initial phase will see the construction of four turbines, expected to be followed by seven more in 2027/28. The wind farm will have a total capacity of around 62 MW, covering the average energy use of approximately 40, 000 households. A special purpose vehicle has been set up for the Spannberg wind farm, which will use turbines from European manufacturer Vestas. The EIB will cover half of the project cost for the initial construction phase, with total project costs for the wind farm with 11 wind turbines expected to be around €115 mln.
Bonds. Green bonds – The European Commission said on Wednesday it had raised €5 bln in the form of Green Bonds under its NextGenerationEU (NGEU) joint borrowing programme launched in the aftermath of the Covid-19 pandemic. The transaction concerned a €5 bln tap of the NGEU Green Bond maturing on Feb. 4, 2050. The 25-year Green Bond was priced 99.788% with a re-offer yield of 3.262%, the Commission said, indicating that bids were in excess of €77 bln, or 15 times oversubscribed. The proceeds of the transaction will be used to finance EU policy programmes as well as green projects in EU member states’ national Recovery and Resilience plans (RRPs).
Widen the net – Germany should take a broader focus in its updated National Energy and Climate Plan (NECP) to also consider hydrogen, carbon capture and storage, and nuclear energy, said think tank Clean Air Task Force (CATF.) The government submitted its final version of the NECP to the European Commission in August, and the plan shows promise but still relies too heavily on a narrow set of clean energy technologies and imported fossil fuels, said CATF. Germany’s ruling coalition has started a shift shift towards allowing technologies to capture and store or use carbon, and has put a focus on nuclear fusion research, while it is also betting heavily on green hydrogen for industry, but CATF has criticised a lack of concrete measures and commitments on CCS in the climate plan. (Clean Energy Wire)
Net zero farming – Ambitious plans to make UK farming ‘net zero’ by 2040 – a decade ahead of the country’s legally binding national target — may not be achieved, the National Farmers’ Union told the BBC. The union said a lack of investment in climate-friendly farming measures by the previous government had made the target challenging but insisted the deadline would not be dropped. In 2019, the NFU set its own target for agriculture in England and Wales to reach net zero GHG emissions by 2040. In Scotland, the net zero target is 2045. Farming currently accounts for around 12% of the UK’s total GHG emissions, largely due to nitrous oxide from fertilisers and manure and methane from ruminant livestock, as well as CO2 – to a much lesser extent – from energy and fuel. A shortage of funding for sustainable farming measures under the environmental land management schemes (ELMs) has made net zero much harder to hit, said the NFU. The union is calling for greater funding for the sector, even while there are concerns the government may cut the farming budget.
Steel support confirmed – The UK government has announced £500 mln of support for the transition of Tata Steel’s Port Talbot steelworks to electric arc furnace production, moving away from coal-fired blast furnaces, which confirms the funding first announced a year ago. In January 2024, Tata Steel rejected a workers’ union plan to keep its Port Talbot blast furnaces running, with executives saying the proposal was unaffordable given Port Talbot’s losses, estimated at £1 mln a day. The switch to electric arc furnace production is expected to make the site profitable again but to incur hundreds of job losses. In response to the news, think tank E3G said: “The government’s deal with Tata for a new electric arc furnace in Port Talbot is a positive step forward, but the UK is the only G7 nation set to lose its ability to produce steel from scratch. This risks jobs and infrastructure goals and could lead to a reliance on high-carbon steel imports”.
Nigerian CDR – Flux, a carbon removal (CDR) project developer, announced on LinkedIn Monday a partnership with the Nigerian Federal Government and the National Biotechnology Research & Development Agency to implement enhanced rock weathering across key agricultural regions. Nairobi, Kenya-based Flux will lead the initiative using regenerative agriculture projects focused on increasing yields from crops such as cassava, maize, and sugarcane.
ASIA PACIFIC
Green Sailing – South Korean shipping giant HMM plans to allocate 23.5 trillion won ($17.5 bln) to expand its business portfolio for future growth, as it aims to be a global green shipping and logistics carrier, according to a statement released this week. The company said 14.4 trillion won, or over 60% of the total investment, will be used to develop sustainable management initiatives such as low-carbon ships and green facilities.
Expansion – Japanese project developer Green Carbon has teamed up with the Department of Agriculture and Rural Development (DARD) of Vietnam’s Hung Yen province to promote a rice paddy project, it announced Wednesday. The project will cover around 27,000 hectares of rice paddies. Green Carbon recently also secured a similar agreement with the DARD of Hai Duong province.
Time to go big – The Federation of Thai Industries (FTI) has urged the newly elected government to promote Thailand as a carbon-trading hub in the Association of Southeast Asian Nations (ASEAN) bloc. As well, the trading of carbon credits should be allowed through the Stock Exchange of Thailand and traders must be provided tax benefits, according to Natee Sithiprasasana, president of FTI’s Renewable Energy Club. The president pointed out that Thailand already has a head start in the trading of carbon credits through the Thailand Voluntary Emission Reduction (T-VER) programme launched by Thailand Greenhouse Gas Management Organisaton (TGO), initiated about 10 years ago, the Nation reported. Now, the domestic T-VER is being upgraded to T-VER premium to comply better with international standards. The Southeast Asian nation also needed clear tax regulations and must provide tax benefits for domestic and overseas trading, both in primary and secondary markets, the president added. The FTI is working in collaboration with TGO to develop the FTIX exchange platform, Thailand’s first digital carbon credit trading platform.
Introducing Kuamut credits – Malaysia Airlines is set to introduce carbon credits from the Kuamut Rainforest Conservation project, to its voluntary carbon offset programme, targeting both passengers and corporate clients. The Kuamut project in July became the first domestic nature-based project to be auctioned, the Bursa Carbon Exchange (BCX). Situated in the state of Sabah, the Kuamut project aims to protect and restore 83,381 hectares of tropical forest over the next 30 years, aiming to cut around 16 million tonnes of CO2e. The airlines launched its voluntary carbon offset programme in June last year, allowing passengers to mitigate CO2e emissions from their flights by contributing to certified carbon offset projects. Earlier this month, the Malaysian government also released a decarbonisation blueprint for its aviation sector, targeting net zero emissions by 2050.
No offsets, please! – Malaysia’s national bourse Bursa Malaysia’s Science Based Targets initiative (SBTi)-validated emissions targets will not include carbon credits, Eco-Business reported. The exchange will not count the credits it has been buying towards its GHG emissions targets as carbon credits are not recognised by the SBTi, except for offsetting residual emissions after all possible measures to reduce emissions have been exhausted, it told the media outlet. Bursa Malaysia’s SBTi-validated targets include a near-term target to reduce absolute Scope 1, 2, and 3 emissions by 50% by 2030, from a base year of 2022. By 2050, it aims to reduce all emissions by 90%. The exchange said that SBTi’s decision would not affect its near-term strategy of continuing to support carbon credit projects via Bursa Carbon Exchange (BCX) and it will continue to purchase offsets for its Scope 1 and 3 emissions.
New ideas – The federal Australian government has signed an agreement with the Australian Capital Territory (ACT) to test new ideas as part of the national energy transition. The Renewable Energy Transformation Agreement lists priorities such as ramping up vehicle-to-grid capabilities, electrification of complex buildings, energy performance improvements, and energy innovation. A statement from Climate Change and Energy Minister Chris Bowen said lessons learned through the programmes would be shared and used to inform future projects across Australia. The ACT achieved 100% renewable energy in 2020, making it uniquely positioned to pilot new ideas, the governments noted.
AMERICAS
Climate concern in Canada – A survey conducted by Deloitte found that 85% of Canadian business leaders “worry all or most of the time” about climate change, BNN Bloomberg reported Wednesday. That’s an increase of seven percentage points from the results of the same survey taken last year. Deloitte’s results also found that 78% of Canadian C-suite executives expect a “high or very high” impact from climate change over the next three years, with many believing that they have been personally affected in the last year.
California carbon neutral – The Sonoma County Board of Supervisors on Tuesday approved a plan to make government operations in the California county carbon-neutral by 2030. The 167-page action plan provides a detailed roadmap to reduce carbon emissions from county operations, increase carbon storage on county-owned lands, and make county lands and operations more resilient to wildfires, droughts, floods, and other climate hazards. Supervisors also directed county staff to implement 25 near-term steps outlined in the Climate Resilience Comprehensive Action Plan and launch a community engagement strategy that will refine and prioritise future county actions to support climate resilience in local communities. The county is taking a two-pronged approach to attaining the carbon neutral by 2030 goal. First, the plan calls for investments that reduce carbon emissions by increasing the use of renewable energy and using energy more efficiently. At the same time, the plan outlines nature-based solutions that can make county-owned lands more resilient to climate hazards and capable of storing more carbon, preventing it from reaching the atmosphere. The plan approved Tuesday by the Board of Supervisors details 54 actions that county agencies can take, divided into six sectors: energy, transportation, waste, water, wildfire, and nature and working lands. Implementing all 25 of the near-term measures is expected to cost $38 mln over the next two years. The county has allocated $32.7 mln for these measures, and staff are actively seeking grants to cover the remaining $5 mln in near-term costs and will return to the Board of Supervisors in the future to request approval and funding to implement the plan’s mid- and long-term measures.
VOLUNTARY
New posting – Svenja Telle has announced her new position as CEO and co-founder of Denominator, which develops data intelligence to connect industrial decarbonization projects with capital markets through full stack software solutions and hardware infrastructure, said the LinkedIn post. Over the coming weeks, the company will announce its initial investment, product launch in Q3, and existing partnerships across carbon capture, green hydrogen, renewable natural gas, and other industry verticals, said the post.
Methodology upgrade – Verra has released a revised version (v2.1) of VM0042 Methodology for Improved Agricultural Land Management (IALM) that enables new projects using the methodology to differentiate between Verified Carbon Units (VCUs) based on greenhouse gas (GHG) emission reductions and VCUs based on carbon dioxide removals. The mitigation outcome label, which was released in August 2023 as part of updates to the VCS Program, is a new market label for VCUs. VM0042 (2.1) also includes the corrections and clarifications issued in January 2024. Projects seeking to complete registration under the 2.0 version of the methodology must have requested listing on the Verra Registry before December 11, 2024, and complete validation by September 11, 2025.
Green products – Sustainability consultancy ClimeCo has launched a ‘ClimeCo Certified Product Program’ to enable companies to showcase the sustainability of products they make without the risk of greenwashing, it announced in a release on Wednesday. To participate in the programme, companies must submit a cradle-to-grave life-cycle assessment of the products they seek to register, identify and implement continual measures to reduce the products’ carbon footprint, and support emissions reduction and removal projects around the world. Upon successful product registration, companies receive the ClimeCo Certified Product badge, which can be added to the product packaging and other marketing channels.
INVESTMENT
Regen ag – Farmland LP, a US fund manager focused on organic regenerative farmland, announced Wednesday an undisclosed investment from Microsoft’s Climate Innovation Fund in the fund manager’s third fund, Vital Farmland III. Farmland LP plans to prepare protocols to develop soil carbon credits on its 18,500-acre farm portfolio across Washington, Oregon, and California. It expects to package carbon credits from several regenerative agriculture practices, generated using Verra’s Verified Carbon Standard. The firm is still actively raising capital for its $250 mln Vital Farmland III fund. Farmland LP claims to be the largest fund manager in the US focused on organic, regenerative farmland, with more than $300 mln assets under management over three funds.
AND FINALLY…
Tanzanian land for credits – Greenpeace is running a petition calling on the Tanzanian government to stop auctioning Maasai land to carbon traders and “trophy hunters”. The petition asks Tanzanian President Samia Suluhu to immediately halt the forced eviction of Maasai people from their ancestral lands, stop allocating Maasai land to Otterlo Business Corporation, and reject carbon credit projects that the NGO calls “a false climate solution”. According to Greenpeace, Maasai people are being evicted from their homes as their land is being auctioned to businesses for carbon trading. The petition has just over 2,700 signatures, and is aiming to reach 10,000. Around 70,000 people from Maasai communities in northern Tanzania have been forcefully evicted from their land in recent years, as the government plans to lease it to Otterlo, a UAE-based safari company, to create a wildlife area for trophy hunting and elite tourism, the magazine New Internationalist reported last year. Tanzania signed a deal for one of East Africa’s biggest land-based carbon credit projects covering six national parks last December, according to the BBC. The country’s burgeoning carbon credit industry is expected to receive a substantial boost with investments worth more than $20 bln expected expected from at least 20 companies and several countries, Carbon Pulse reported in July.
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