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TOP STORY
US market regulator approves voluntary carbon credit trading guidelines
The US Commodity Futures Trading Commission (CFTC) approved final guidance Friday regarding the listing for trading of voluntary carbon credit derivative contracts.
VOLUNTARY
ANALYSIS: Voluntary carbon market overlooking CORSIA insurance bottleneck
Large volumes of eligible voluntary carbon credits for the UN’s CORSIA international aviation offsetting scheme will take years to materialise due to supply requirements that force project developers to guarantee against double claiming risk, even if ICAO approves major standards for the current phase at a meeting in November.
Verra urged to overhaul investigation process after REDD project loses $30 mln during probe
Verra is damaging investor confidence in the voluntary carbon market through its “presumption of guilt” when handling investigations, warned stakeholders in the Southern Cardamom REDD+ project (SCRP) that says it lost more than $30 million in revenue during a 14-month long probe.
INTERVIEW: Carbon removal offtakes need de-risking to grow the market
The carbon removals (CDR) market needs offtake agreements with built-in de-risking measures to scale and offer attractive credit prices, a dealmaker told Carbon Pulse.
Climate Asset Management raises over $1 billion for natural capital projects
Climate Asset Management (CAM) has secured over $1 billion to invest in natural capital initiatives such as regenerative agriculture, as investor demand for projects aimed at improving soil health, planting trees, and rehabilitating land continues to grow, the firm’s CEO has said.
Food companies team up to cut emissions in dairy farming
A Japanese food maker has teamed up with a French food group to drive down emissions from dairy farming worldwide by promoting a special feed additive.
Carbon credit platform, French utility subsidiary in partnership to boost transparency, innovation in VCM
A France-based carbon crediting platform is teaming up with the subsidiary of a state-owned utility in the country to “promote transparency and innovation” in the voluntary market.
EMEA
BRIEFING: Business groups nervous as final talks near on EU’s Green Claims Directive
As EU institutions gear up for talks to finalise the proposed Green Claims Directive, participants in the voluntary carbon market have flagged issues with the draft bill, arguing it goes too far beyond its original objective of fighting greenwashing.
‘Breakthrough’ as taxation comes under watch of EU climate chief, CBAM still unclear
With the European Commission’s new lineup it will be the EU’s climate action commissioner who will handle taxation policy, a move hailed as a “breakthrough” by a top official, although it is still unclear who will be in charge of the EU’s Carbon Border Adjustment Mechanism (CBAM).
Euro Markets: EUAs tick up on gas recovery, ease 2% over the week
The European carbon market moved with relative stability on Friday, tracking a rebound in energy markets after a volatile previous session linked to reports of a Ukraine-Azerbaijan gas transit deal, while analysts point to tests ahead at a key technical support level.
European carbon trader joins Gunvor from Freepoint
A European carbon trader previously with Freepoint Commodities has started with Switzerland-headquartered trading firm Gunvor Group, Carbon Pulse has learned.
AMERICAS
US to fund up to $1.8 bln in new DAC projects
The US Department of Energy (DOE) will fund up to $1.8 billion of mid-scale and large-scale direct air capture (DAC) facilities, according to a Notice of Intent (NOI) issued on Friday.
WCI Q4 auction ups allowance volume after Q3 dip
The California-Quebec joint WCI auction in November will offer a higher volume of allowances this quarter following Q3’s year-to-date nadir, according to a Friday notice from California regulator ARB.
CFTC: Financials favour V25 CCAs again, while producers prefer V24s and both avoid RGAs
Financial entities once again favoured V25 California Carbon Allowances (CCAs) while producers preferred the current year vintage, and both trimmed net length in RGGI allowances (RGA), according to data published Friday by the US Commodity Futures Trading Commission (CFTC).
Constellation Energy, Microsoft partner to restart Three Mile Island nuclear power plant
US-based Constellation Energy plans to restart the Three Mile Island nuclear power plant, which was closed in 2019, under a 20-year deal with Microsoft to supply carbon-free energy to its data centres.
US investment manager launches venture to earn carbon credits from planting oyster farms
A US-based investment manager has launched a new company with the goal of generating carbon credits through planting 6 million oysters in the Chesapeake Bay.
Second Mexican Yucatan IFM project collaboration yields 380k carbon credits
A developer partnership announced Thursday the first tranche of issuance from their second improved forest management (IFM) project in Mexico’s Yucatan Peninsula region.
ASIA PACIFIC
INTERVIEW: Either have a market or don’t, Australian project veteran tells government, industry
A carbon project developer who went public this week over what he sees as a self-serving and nepotistic industry has urged the government to remove so-called flexibility measures under the Safeguard Mechanism.
AU Market: Bank forecasts ACCU price to climb 50% by next year as Safeguard demand begins to awake
One of Australia’s largest banks have forecast the price of the country’s carbon credits to double by this time next year.
Australian state pulls together big data for better CCS mapping
The West Australian government is finding new ways to support companies interested in pursuing carbon capture and storage (CCS) projects in the state, as its mining and energy department has aggregated a large amount of historical oil and gas drilling information for use.
CN Markets: CEA price rebound to 90 yuan level, trading volumes increase
Chinese carbon allowance prices saw a modest recovery over the past week after the national holidays, with trading activity continuing to pick up ahead of the compliance deadline.
Sarawak coal mine poses significant carbon risk, more transparency needed -watchdog
The continued existence of a large thermal coal mine in Sarawak, Malaysia, goes against the nation’s climate commitments and the opacity surrounding environmental approvals to its extension is a problem, an environment watchdog said Friday.
Japanese trading house, CCS developer form joint venture targeting 10 Mt of captured CO2 across North America
A Japanese trading house has entered into a joint venture with a US carbon capture and storage (CCS) developer to sequester up to 10 million tonnes of CO2 annually across North America by 2030, according to reports.
AVIATION/SHIPPING
Airline operators face future CORSIA compliance risk as Article 6 negotiations drag on -report
Airline operators may struggle to meet compliance requirements under Phase 2 of the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), which starts in 2027, according to a new report.
INTERNATIONAL
Biggest automakers in Europe and North America aren’t addressing their steel production emissions -report
The majority of automakers in Europe and North America have not set targets for integrating fossil-free steel, according to a report released Wednesday.
BIODIVERSITY (FREE TO READ)
INTERVIEW: Biodiversity credit rebranding into ‘nature asset’ could unlock corporate demand
A Brazil-based biodiversity and carbon developer is considering transitioning from a ‘credit’ to a ‘nature asset’ approach in a bid to attract corporate funding, the company told Carbon Pulse.
Volvo vows to take action on nature, biodiversity
Swedish carmaker Volvo has published a position paper on nature and biodiversity, pledging to take action to reduce its impacts and to invest in conservation and restoration to counterbalance residual negative effects of its activities.
Environmentally harmful subsidies grow to $2.6 trillion per year, study says
Environmentally harmful subsidies currently stand at no less than $2.6 trillion per year, $800 billion higher than 2022 estimates and equivalent to 2.5% of global gross domestic product (GDP), according to a report released this week.
Japanese govt, UN agency partner with private sector to scale sustainable coffee in Tanzania
A UN agency and the Japanese ministry of agriculture have teamed up with two major national companies to support small-scale coffee producers in Tanzania in implementing sustainable practices.
Large sustainable aquaculture firm secures €2.5 mln from Dutch fund
An offshore aquaculture company based in the Faroe Islands has received €2.5 million from a fund managed by the investment arm of a Dutch bank.
COMMENT
ECOSYSTEM MARKETPLACE: The time is right for a forest moonshot in the US
Despite bipartisan support and progress in implementing natural climate solutions, the U.S. needs a significant, coordinated effort, or “moonshot,” to increase reforestation, protect forests, and manage lands sustainably to meet national climate goals, overcome current barriers, and prevent the loss of millions of acres of forest by mid-century, writes Sacha Spector, Program Director for the Environment at the Doris Duke Foundation.
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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
*NEW* – Climate Impact Partners Webinar – October 2: New research shows major companies continue action on climate. Research from Climate Impact Partners shows that Net Zero targets are up, and that more companies plan to use carbon credits to meet their carbon goals. See how you compare by signing up to a webinar and download the full report into the climate commitments of Fortune Global 500 companies.
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
Emissions exposure – A report from LSEG published this week, developed in collaboration with the UN-convened Net-Zero Asset Owner Alliance (NZAOA), highlighted emissions trends in key market benchmarks across widely used absolute emissions and emissions intensity metrics. Portfolio emissions metrics – and the emissions’ performance of key market benchmarks – are under close scrutiny as investors place growing emphasis on monitoring their carbon exposure, the report finds. In absolute terms emissions – assessed in terms of ‘chained’ absolute emissions – have continued to slowly increase for equities (by 2.3%/yr) and have been largely flat for fixed income (-0.7%/yr) in the same period, according to LSEG. The attribution analysis in the research found that short-term volatility has been driven by non-carbon factors – such as constituent churn, sector rotations or changes or adjustments to normalisation factors.
Climate cash – The World Bank Group delivered a record $42.6 bln in climate finance in fiscal year 2024, a 10% compared to the previous year, the group announced on Friday. Taken together, climate finance represented 44% of total funding delivered in fiscal year 2024, which reached $97 bln. At COP28, the World Bank Group committed to increasing its climate finance to 45% of total lending for the fiscal year 2025, which runs from July 1, 2024 through June 30, 2025. Climate finance will be a key topic at the COP29 climate summit in Baku this November. Countries will seek an agreement on the New Collective Quantified Goal (NCQG) which is due to replace the existing $100 bln annual target from 2025. Developing countries are calling for $1 trillion or more per year of public and private funds to be mobilised for climate.
EMEA
German hydrogen request – Germany has called for a seven-year delay to EU clean hydrogen rules requiring a temporal correlation evidence of a match between renewables output on the grid and hydrogen production – the so-called additionality criteria. The demand was formulated this week by German Economy Minister Robert Habeck, in a letter addressed to EU energy commissioner Kadri Simson, seen by Bloomberg. In the letter, Habeck calls for an extension of the phase-in period of the EU’s additionality rules until 2035. He also questions the measure itself, saying the requirements are “still too high” and slowing hydrogen projects in Germany. (Bloomberg)
F-gases – The EU Commission has adopted four implementing regulations to align with the new rules on F-gases that entered into force in March. The bill should prevent almost 500 Mt of further CO2 emissions by 2050, contributing to the EU’s 2030 climate target of reducing emissions by at least 55% by 2030, on the road to making Europe climate-neutral by mid-century. Before you rejoice, read Carbon Pulse’s analysis on the F-gas conundrum.
Flood relief for Poland, Czechia – Following the recent severe flooding across Central and Eastern Europe, the EU has mobilised assistance at the request of Czechia and Poland through the EU Civil Protection Mechanism. In Czechia, several EU member states have stepped in to provide support, with Slovenia, Belgium, Croatia and Germany sending hundreds of dehumidifiers to dry water-damaged buildings. Meanwhile, Poland’s request for water treatment items has been met by Sweden, which will supply hundreds of bottles of chloramine. Yesterday, European Commission President Ursula von der Leyen announced that €10 billion could be mobilised from the cohesion funds for the countries that are affected by the severe floods.
ASIA PACIFIC
No to nuclear – Two reports published Friday have raised challenges to the Coalition opposition’s proposal to pursue nuclear energy in Australia, the ABC reports. The Institute for Energy Economics and Financial Analysis estimates the Coalition’s lightly-detailed plan would see power bills rise by around A$665 per year($453/y) on average to meet the cost of building seven nuclear power stations. Analysis from the Department of Climate Change, Energy, Environment, and Water also said the opposition’s policy would fail to meet the expected rise in electricity demand, forecast to be 1.5 times greater than current needs in 2035. Climate Change and Energy Minister urged the opposition to provide details of its energy plan, while Ted O’Brian, shadow energy spokesperson, reiterated the costings would be released by the end of the year.
Green shipping – Hanwha Ocean Co., South Korea’s third-largest shipbuilder, has introduced a carbon-free gas carrier, as the demand for eco-friendly vessels is rising due to stricter global emissions regulations, according to the Korea Economic Daily. The liquefied natural gas (LNG) carrier, unveiled at Gastech 2024 in Houston, is powered by electric propulsion based on an ammonia gas turbine. Hanwha also plans to design the vessel to be powered by hydrogen fuel cells and batteries.
AMERICAS
House attacks tailpipe rule – The Republican-led US House of Representatives voted Friday to repeal the Biden administration’s clean-vehicle rule, which aimed to cut tailpipe emissions by 50% by 2032. The White House has since vowed to veto the measure if passed, Reuters reported. Republicans have argued that the rules are so stringent that they effectively force automakers to focus on electric vehicle production. The measure passed 215 to 191, with eight Democrats joining Republicans in support.
Stay from shadow docket – A group of environmental groups filed a response Friday in a US Supreme Court case that aims to block protective limits on methane pollution. The case, originally filed by a group of Republican states and oil and gas trade groups, targets EPA standards designed to reduce methane leaks, venting, and flaring in the oil and gas industry. Plaintiffs are asking the high court to issue an emergency stay from its shadow docket – or the docket on which cases typically do not receive an extensive briefing or a hearing. In their Friday motion, environmental groups are asking the court to oppose the emergency stay, arguing that it would allow the “emissions of millions of additional tons of harmful pollution.”
Transportation leads CA – A report released Friday by the California ARB says that the state’s emissions dropped 2.4% in 2022 over the year prior. Of the seven sectors the agency tracks, five recorded emissions reductions for a combined total of 9.3 mln tonnes – equivalent to removing 2.2 mln gas-powered cars off the road for a year. The transportation sector recorded the most significant drop, thanks to the increasing use of renewable fuels and the state’s growing fleet of electric vehicles. The electricity sector also recorded significant reductions thanks to the growth of renewables – wind and solar comprise 30% of generation – and an increase in the state’s battery storage capacity. Between 2019 and 2023, battery storage increased by 757%.
AB TIER – The Alberta government updated its Technology Innovation and Emissions Reductions (TIER) regulation on Friday, making a number of revisions to the text. Significant revisions include updates to its Emissions Intensive Trade Exposed sectors (EITEs) for 2023-2026, adding over 20 new sectors, and an update to its aggregate default facility-specific benchmark population adjustment calculations.
VOLUNTARY
Magic five – Verra has launched the first public consultation on proposed updates to its Verified Carbon Standard (VCS) that will result in version 5 of the programme. The consultation runs until Nov. 4, 2024. Verra envisions that version 5 of the VCS will enhance the integrity, impact, and usability of the programme, it said in a release this week, with the broader objective of enabling the voluntary carbon market to unlock finance for climate action at the scale and pace needed to halve global emissions by 2030. The proposed updates included in this consultation focus on (1) fundamentals of the VCS, (2) enhancing data transparency and usability through digital tools, (3) environmental and social safeguards, and (4) a refined programme scope.
New ventures – Former South Pole CEO, Renat Heuberger, has taken on the role as Chairman at MPower Ventures AG. The company, based in Zurich, invests in solar power in emerging markets. In November 2023, the South Pole board replaced Heuberger in the wake of the Kariba REDD+ project suspension.
Midori means green – Shares of Vancouver-based Midori Carbon have been approved for listing on Canada’s CSE under the symbol MIDO. Midori has developed a platform and related software application that are designed to make the trading of carbon credits easy and accessible. The company anticipates that individuals will be able to use its mobile application to buy and sell the credits, enabling them to participate in a massive and rapidly growing market.
AND FINALLY…
Pearls of warmth – Italian oyster farmers are looking to take advantage of the rapidly warming Mediterranean Sea by cultivating the first pearls made in European seas, Reuters reported. The first specimens of Pinctada radiata, a pearl oyster native to the Red Sea, were spotted in 2023 for the first time in the Gulf of Poets on Italy’s northwestern coast. Less than a year later, they are proliferating in what used to be some of the Mediterranean’s coldest waters. An Italian cooperative that breeds oysters for food is now speaking to pearl oyster farmers in Mexico for tips on production techniques.
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