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TOP STORY
Taiwan plans emissions trading scheme, eyes initial pilot phase -minister
Taiwan is planning to launch domestic emissions trading in four years’ time, starting initially with a pilot phase, Environment Minister Peng Chi-ming told local media on Thursday.
VOLUNTARY
ICVCM adopting ‘blunt’ approach to assessing voluntary carbon integrity after ruling out renewables, say analysts
The Integrity Council for the Voluntary Carbon Market (ICVCM)’s recent decision to rule out renewable energy credits from its high integrity CCPs tag reflects a “somewhat blunt approach”, according to analysts.
BRIEFING: Experts confident of voluntary carbon market recovery, but not in 2024
Experts have said that they are confident the necessary factors for the voluntary carbon market (VCM) to recover are in place – but that this may not take place for some time.
Google buys first nature-based carbon removal credits from Brazilian project
US tech giant Google will buy 50,000 nature-based removal credits through 2030 from a Brazilian startup, marking the first purchase of its kind from the technology giant, the company announced Thursday.
Voluntary carbon investor to buy millions of forestry credits from Mexican project
A voluntary carbon investor has signed a deal for the offtake of 300,000 credits per year from a forest restoration initiative in Mexico.
Trio announces collaboration to build Rwandan Article 6 project pipeline
Gold Standard and Singapore-based GenZero on Thursday announced they have teamed up with Rwandan government agencies to develop a pipeline of projects in the African country eligible to earn carbon credits under Article 6 of the Paris Agreement.
Consultancy launches new voluntary carbon platform to offer credits to clients
A sustainability consultancy has launched a new platform that will enable its clients to access voluntary carbon credits.
US non-profit introduces VCM data hub to improve market transparency
A US-based non-profit has launched a platform allowing users to explore the world’s largest base of voluntary carbon market (VCM) transactions.
CDR credits issuer set to boost monitoring, improve accuracy after fresh finance round
A provider of carbon removals (CDR) credits has completed an oversubscribed Series A funding round, which will help to bolster its monitoring, reporting, and verification (MRV) service, add more CDR technologies, and improve its efficiency and accuracy, it announced on Thursday.
EMEA
EU, US beginning to see eye-to-eye on Article 6 standards, says bloc’s lead negotiator
The US is beginning to cede ground in long-running negotiations over Article 6 of the Paris Agreement, showing flexibility on the EU’s demand for strong minimum standards to govern international carbon markets, the bloc’s chief climate negotiator said on Thursday.
EU’s upcoming ‘Industrial Decarbonisation Accelerator Act’ starts to take shape
The European Commission’s upcoming Industrial Decarbonisation Accelerator Act will aim to improve the business case for the green transition in energy-intensive industries and the wider economy, a senior EU official has said.
Climate ‘divide and rule’ in new EU Commission might just work, experts say
As European Commission President Ursula von der Leyen unveiled her new EU executive earlier this week, with climate policies scattered across various portfolios, observers in Brussels seemed willing to give her the benefit of the doubt, saying this configuration may be useful to prevent political culture wars.
Euro Markets: EUAs plunge to new five-month low as gas drops 6% on supply news
EU allowance prices fell steeply on Thursday afternoon, reaching a new five-month low after earlier grinding their way higher, as gas markets were roiled by reports that Azerbaijan may ship gas to Europe through Ukraine, allaying fears of a supply shortage this winter after Kyiv’s contract to ship Russian gas comes to an end.
Swiss building materials producer invests in low-carbon cement startup
A Switzerland-based multinational construction materials manufacturer has invested in a low-carbon cement technology startup to decarbonise buildings at scale, it announced on Thursday.
World Bank unit, Danish agtech partner to advance soil carbon farming in Eastern Europe
A World Bank unit and a Copenhagen-based agtech company will collaborate to close the ‘finance gap’ in sustainable farming across Eastern Europe, according to a press release.
AMERICAS
Bolivia moves to centralise newly legal voluntary carbon market -media
Bolivia is preparing a presidential decree that would require domestic carbon projects to transfer their credit issuances to the central government, national media reported this week.
California’s LCFS changes would create decarbonisation ‘obstacles,’ ethanol producer says
Ethanol producer POET publicly criticised proposed changes to the Low Carbon Fuel Standard (LCFS) Tuesday when the producer’s senior attorney told a California ARB division chief that the changes would introduce “obstacles” to practical decarbonisation pathways.
Canada succeeds to lower CO2 emissions in 2023 during economic growth –report
An independent estimate of Canada’s national emissions in 2023, published Thursday, showed a modest decline, relative to the year prior.
Nova Scotia Liberals attempt to bring back cap-and-trade programme
The former premier of Nova Scotia introduced a bill that would re-install a provincial cap-and-trade programme, eying an end to the province’s compliance with the federal carbon levy.
WCI Markets: CCAs gain ground amidst hushed market activity, wait for programme clarity
California Carbon Allowance (CCA) prices increased over the past week amidst a dearth of activity as market participants await a rulemaking package from regulator ARB.
California gasoline consumption declines at slower pace in June as diesel sales hit year high
California gasoline consumption continued its year-over-year decline -albeit at a slower pace – in June while diesel sales reached their highest levels of the year, state data published this week showed.
More federal cash needed for research before marine CDR can scale in the US, Congress hears
A ramp up in federal funding is needed to boost research and development into the nascent marine carbon dioxide removal (mCDR) industry that will require robust public-private partnerships to scale and become commercial, a congressional committee heard Thursday.
ASIA PACIFIC
Australian carbon trading firm raising A$25 mln – media reports
An Australian carbon trading company is seeking A$25 million ($17 mln) to expand into Asia, according to local media.
China launches pilot programme for sustainable aviation fuels
China has launched a pilot programme for sustainable aviation fuel (SAF), with the first batch of flights carried by domestic airlines refuelled with green fuels this month, the country’s aviation regulator announced Thursday.
Trading house sells first CORSIA-certified SAF in Japan
A Tokyo-listed trading house has teamed up with two international partners to make the first batch of sustainable aviation fuel (SAF) certified by the UN’s Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) available for purchase in Japan.
Pacific flag carrier hitting the sweet spot for SAF
One of the Pacific’s largest airlines has announced a partnership with a sugar company and major development bank to develop sustainable aviation fuel (SAF).
Brewery to explore using biochar for carbon storage, biodiversity uplift
A Japanese brewery has partnered with researchers to explore the impacts of applying biochar to malting barley in order to store carbon eligible for J-Credits and at the same time boost soil microorganism biodiversity.
INTERNATIONAL
Most bank decarbonisation targets not fit for purpose -report
Most bank decarbonisation targets are not fit for purpose and need to be revised to effectively reduce emissions, according to a report released this week.
Boosting demand for low-carbon products key for green heavy industry to take off -report
Boosting demand for low-carbon products is key if large-scale green industrial projects are to take off, according to a report published on Thursday.
BIODIVERSITY (FREE TO READ)
Australian trio’s reef credits method approved by market administrator
Three Australian companies have announced their method to allow landholders to earn reef credits from improved grazing land management that seeks to boost soil health and improve water quality at the Great Barrier Reef (GBR) has been approved by the market’s overseer.
Marine biodiversity credits must address quick baseline shifts, expert says
Marine biodiversity credit methodologies should focus on addressing quick shifts in aquatic ecosystem conditions to create reliable units for the market, an expert told a webinar on Wednesday.
UK govt funds water company’s project to develop nature-based solutions
An environmental company and a water firm in the UK have secured funding from the government to develop a £580,000-project aimed at unlocking nature-based solutions to restore habitats and improve water management.
Australasian group taps nature markets in investor toolkit
The Responsible Investment Association Australasia (RIAA) has launched a Nature Investor Toolkit, a guidance framework that also sheds light on opportunities related to nature markets.
Australia sets course for national ecosystem accounting
The Australian Bureau of Statistics has released a paper outlining its approach to developing the country’s first national set of ecosystem accounts, ahead of a full rollout in early 2025.
Biodiversity net gain register to list another 330 units, project developer says
The number of units available on England’s national Biodiversity net gain (BNG) register are set to double with the listing of one 617-hectare site, a restoration company said on Thursday.
Biodiversity Pulse: Thursday September 19, 2024
Presenting Biodiversity Pulse, Carbon Pulse’s free newsletter on the biodiversity market. It’s a twice-weekly summary of our news plus bite-sized updates from around the world. Subscribe here
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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
INTERNATIONAL
Shipping off-course – The International Maritime Organization (IMO) needs to agree significant changes to the shipping ecosystem in order to meet the UN body’s goals to cut emissions by 30% by 2030 and 80% by 2040 and reach net zero by 2050, according to a report by the NGO Seas At Risk. The IMO meets this month to discuss how to hit targets for a sector that accounts for 3% of global GHG emissions. According to Seas At Risk, this requires a shift in the maritime industry’s governance, as local and regional governments need to support the uptake of greener energy and more efficient technologies, such as modernising port operations and shifting to wind-powered vessels.
CDR growing too slowly – Carbon removals are emerging as a viable investment opportunity, but not at the pace needed to reach net zero, according to consultancy Wood Mackenzie. CDR projects need to start ramping up, but to reach the necessary scale, removals need to be monetised, governments need to set national removal-specific targets with incentives, and developers need to deliver projects at prices that are attractive based on expected future carbon prices, it said in a report. Nature-based solutions offer the greatest potential to scale removals at a lower cost than engineered solutions, it added. High-emitting countries such as the US, Brazil, China, Indonesia, and India have land resources to accommodate gigatonne-scale projects.
AMERICAS
Record loss – US-based registry Verra recorded its largest ever financial net loss of $9.3 mln in 2023, while also ramping up investments related to its new REDD+ methodology and digital project hub, according to financial records released on Wednesday. In 2022, the company made a $6.1 mln positive net income and a revenue of $32,4 mln, as compared to a revenue of $29.8 mln in 2023. REDD+ projects, including Verra’s programme, have faced criticism in recent years, with some questioning the reliability of their carbon crediting methodologies and the actual impact on reducing emissions.
Too ‘woke’ – The US House of Representatives passed with a 217-206 vote legislation that restricts fund managers from considering environmental impacts or social governance when making decisions about employer-sponsored retirement funds. The bill, Protecting Americans’ Investments from Woke Policies Act, or HR 5339 is one of two bills up for a House vote this week that targets environmental, social, and governance investing. Three Democrats crossed the aisle to agree that environmental impacts and other nonfinancial information should not factor into retirement fund investment decisions, E&E News reported Thursday.
Eye on elections – Trade association Renewable Fuels Association (RFA) is optimistic that a second Trump administration would preserve key biofuel provisions in the Inflation Reduction Act (IRA), particularly tax credits for biofuels and sustainable aviation fuels. RFA president Geoff Cooper anticipates a “surgical” approach to scaling back the IRA, as opposed to a full repeal, given the importance of these incentives to rural economies and the biofuel sector, E&E News reported Wednesday. Republican lawmakers have also expressed interest in maintaining biofuel provisions within the IRA due to investments in their districts.
Add to the list – The California Assembly’s special session committee on oil and gas now includes eight bills proposed by Assemblymembers, the latest of which is legislation that would delay petroleum tankers from a rule that requires them to reduce their emissions while docked in port. ABX2-, proposed by Assem. Mike Gipson (D), would delay enforcement until Jan. 2027 for vessels visiting the ports of Los Angeles and Long Beach, and Jan. 2029 for vessels visiting any other port – a two-year delay to the initial rule. It’s unclear whether the bills will be heard during the session, which was initially intended to address gas price spikes.
Podesta panel – John Podesta, who succeeded John Kerry as senior advisor to the president on international climate policy, delivered wide-ranging comments at a panel discussion hosted Thursday by the journalism group Covering Climate Now. Amongst other points, Podesta expressed a belief that many investments provided by the IRA will remain intact regardless of the outcome of November’s presidential election, said the US needs to cooperate on China, and noted that the US may need to rely on fossil fuels in the near term as it continues to pursue an energy transition – defending the necessity of CCS tax credits under the IRA.
EMEA
Green light for Greensand – DNV, an independent energy expert and assurance provider, has certified the first CO2 storage site for Project Greensand in Denmark. The project operator “has developed plans for the safe and effective geological storage of CO2 in compliance with ISO 27914 which defines best practice for subsurface characterisation, injection operations, and plume monitoring]”, said DNV in a press release. Project Greensand is Denmark’s first offshore CO2 storage site and counts 23 partners. “We now have independent evidence… that our site can safely and permanently store large volumes of CO2,” said Mads Gade, head of INEOS Energy Denmark, the project’s leading partner. DNV’s “thorough and independent” assessment will “enhance” the approval process with authorities, he added. By 2025-26, Project Greensand aims to store up to 400,000 tonnes of CO2 annually, with potential expansion to 3 mln tonnes by 2030.
State aid – The EU Commission approved a €2.7 bln Austrian State aid scheme to support companies active in the industrial sector to decarbonise their production processes. The money be awarded through a competitive bidding process. The first auction is expected to be launched in 2024. The aid will take the form of direct grants, covering either investment costs only (so-called ‘investment grants’), or both investment and operating costs (so-called ‘transformation grants’). The scheme will run until 31 December 2030. It is expected to bring around 10.5 MtCO2e savings until 2040.
Let’s get it started – Swedish steel startup Stegra, which was known as H2 Green Steel until last week, has received the first €100 mln of at total €265 mln in state aid allocated by the government of Sweden, Hydrogen Insight reports. Stegra is building a green steel unit with 700 MW of electrolyser capacity. The company estimates it will reduce emissions by 95% compared to traditional blast furnace processes.
Done with Phlair – Munich-based Phlair, formerly Carbon Atlantis, a company developing a hydrolyser-based direct air capture (DAC) technology, has raised a €14.5 mln seed round. The financing round is led by Extantia Capital, with participation from Planet A and Verve Ventures and includes a €2.5 mln grant from the EIC accelerator. Existing investors Atlantic Labs, Counteract, and UnternehmerTUM Funding for Innovators also participated in the oversubscribed round. The funding will be used to bring its first-of-a-kind DAC plants online in 2025, delivering to a roster of early customers such as Shopify, Stripe, Klarna, and Deep Sky.
Laggards to be dumped – Dutch bank ING will dump large clients that it believes are not doing enough to reduce their climate impact, in the latest show of growing divergence between European and US banks on the risks of climate change, the Financial Times reported. ING has put its clients on notice that it would either restrict or stop providing finance to companies that fail to address their footprints on a case-by-case basis. ING has assessed 2,000 of its largest clients based on their publicly available climate transition plans and other data, and given companies until 2026 to make progress. The Dutch bank’s position is in contrast to that of peers in the US, such as Bank of America’s loosening of climate targets.
Electrification – Electrifying upstream oil and gas production could reduce emissions by over 80%, according to research and business intelligence company Rystad Energy. Norway, which has largely electrified its offshore rigs, has cut emissions by 86%, from 8.4 to 1.2 kg of CO2 per barrel of oil equivalent. While Norway benefits from abundant renewable energy, other countries face challenges like distance from renewable sources. However, even a partial electrification will significantly cut emissions, according to Rystad. The company identified 30 oil and gas basins with hydrocarbon reserves worldwide that, if partially electrified, could avoid 5.5 bln tonnes of CO2 emissions by 2050, reducing global warming by 0.025°C.
Northvolt troubles – Flagship EU battery startup Northvolt is in trouble, reported the Financial Times, with the Sweden-based manufacturer struggling to ramp up output at its key factory. The Skellefteå facility has technical annual capacity of 16 gigawatt hours, but last year it produced significantly less than 1GWh, which is the level needed to power some 17,000 cars. Having raised $15 billion in equity, debt, and government support – and with the backing of Volkswagen, Goldman Sachs, BMW, Siemens and BlackRock – Northvolt has been haemorrhaging cash, and last week announced that it would cut a large number of jobs. Key problems cited include delays related to COVID-19, an overambitious expansion plan, as well as the deaths of a number of seemingly healthy employees at Skellefteå.
Car market depressed – August 2024 saw new EU car registrations sharply decrease by 18.3% compared to the same month last year, with negative results across the region’s four major markets: Germany (-27.8%), France (-24.3%), and Italy (-13.4%), and Spain (-6.5%), according to data from ACEA. Battery-electric vehicles accounted for 14.4% of the EU car market in August, down from 21% the previous year. This represents the fourth consecutive month of decline this year, contrasting with the almost consistent month-on-month increases last year.
Friday for future – NGOs are organising a climate march in Brussels on Sep. 20. They urge adherence to the Paris Agreement and the EU Green Deal, reject austerity measures, refute a global warming hiatus as a rejection of the current climate crisis, and call for an end to government subsidies for fossil fuels; ahead of UN summit in New York next week. The protest starts at 1730 CEST.
Clash on anti-deforestation law – The centre-right European People’s Party (EPP) and the socialists in the European Parliament are at loggerheads over the EU’s anti-deforestation law. Herbert Dorfmann, EPP coordinator in the European Parliament’s Agriculture Committee (AGRI), and Peter Liese, his counterpart in the Environment Committee (ENVI), have called on the European Commission to “immediately delay the implementation of the Deforestation Law,” echoing calls Liese made in an interview with Carbon Pulse in June where he labelled the law a “bureaucratic monster” that must first be delayed and then revised. Just hours after the EPP issued its statement, the Socialists & Democrats (S&D) group sent a letter to the Commission urging the EU executive instead to stick to the original timeline for implementing the law. “It is crucial that the EUDR is applied without delay,” the letter states. (Euractiv)
ASIA PACIFIC
Charging up – Chinese-based Trina Solar has submitted plans to build what would be the biggest battery storage system in Australia, proposing a 660 MW/2,640 MWh project in Kemerton, south of Perth, Renew Economy reports. WA is home to at least three big battery projects at more than 2,000 MWh, with two already under construction. The Kemerton project will sit on around 19 hectares of land previously used for sand mining operations that have reached the end of its life. Trina Solar is pursuing two other battery projects in Australia in South Australia and Victoria.
Business expansion – Tokyo-based Erevista, which provides decarbonisation solutions, has released a carbon credit creation support service, Carbon Neutral Palette, it announced Thursday. The company said it aims to expand the scope of its environmental value procurement service Offsel and contribute to the creation of domestically issued J-Credits.
Approved – Mitsui OSK Lines (MOL) has received approval in principle from Det Norske Veritas for an 80,000 cubic metre capacity liquefied hydrogen carrier. The design was developed by Woodside Energy and HD Korea Shipbuilding and Offshore Engineering. A presentation ceremony was held on Thursday at Gastech in Houston. MOL said in a statement the partners would continue to develop the vessel and aim for it to come into service by 2030.
VOLUNTARY
Verra consults on cement – Verra is launching a public consultation for a minor revision to VM0043 Methodology for CO2 Utilization in Concrete Production, v1.0 in the VCS. The proposed revision will enable project proponents to quantify CO2 removals and GHG emission reductions separately. They will then be able to apply for mitigation outcome type labels, a new label type for Verified Carbon Units that was released in August 2023 to meet market demand for differentiating between mitigation outcomes. The revision also suggests integrating a discount factor to account for uncertainty related to the displacement of virgin materials, expanding the methodology to pre-cast products, and a correction regarding the calculation of baseline emissions. The consultation is open until Oct. 18.
Carbon offset loss – Canada-based carbon offset developer Karbon-X Corp reported a net loss of $2.7 million USD for FY20204, after abandoning a deal with Silviculture Systems Corp in November 2023. In doing so, the company wrote off the carrying value of investment of nearly $2.6 million, according to the annual report published last Sep. 13. The company, which purchases verified carbon credits from vendors and resells them to industry and the general public in the voluntary carbon market, had announced a $7.3 million (C$9.9mln) acquisition of the South American tree-planting company in May 2022, regarding a project to plant 750,000 trees, develop a charcoal stream, and generate carbon credits.
AND FINALLY…
Dirty tactics – Fossil fuel companies are spending a total of $5.6 billion on advertising for big sporting events, according to a new report from British think tank the New Weather Institute. From football, Formula 1, cricket, and cycling, to golf, rugby, and snow sports, fossil fuel companies are betting big on sport to help them maintain their profits and social licence, write the authors, who listed a total of 205 active deals. These deals include some that date from as early as 2011 and others that are scheduled to last through 2030, the report said. “Most deals lack transparency regarding the exact amounts involved, the duration and the conditions attached,” the report said, citing “the growing role of Middle Eastern oil states” in those activities. The report looked in particular at four companies: Saudi Aramco, TotalEnergies, Shell, and petrochemical giant Ineos. The report criticises these companies for using sport to improve their public image, similar to how tobacco companies previously used sports sponsorship. It also calls for a ban on fossil fuel sponsorships in sport, similar to the one imposed on tobacco advertising. As well, the authors advocate for sports organisations to seek more sustainable sources of funding and ensure transparency and accountability in sponsorship deals. Lastly, the report emphasises the existential threat climate change poses to sport, with events already being affected by extreme weather conditions.
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