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CARBON FORWARD LONDON
UK hopes to kickstart removals by bringing them into ETS
The UK’s plan to integrate greenhouse gas removals into its Emissions Trading Scheme (ETS) is designed to boost demand for credits at a time when the UK market faces turbulence and uncertainty, speakers said at Carbon Forward Expo London on Wednesday.
Analysts forecast 50-cent rise in fuel prices due to EU ETS2
The price of petrol and diesel is expected to jump on average by €0.50 per litre at the pump across Europe when the EU’s new Emissions Trading Scheme for road transport and heating fuels (ETS2) comes into force, analysts have said.
No need to panic about end of EU ETS allowances in 2039, says Commission
A European Commission official said there is “no need to panic” about running out of EU ETS allowances in 2039, due to the expansion of the system’s scope to include additional sectors and auctioning of allowances for aviation.
Delayed industrial hedging defers EU carbon price hike, traders say
How and when industrials start hedging allowances on the EU ETS will be key to price dynamics, but that behaviour may be delayed depending on the enforcement of the Carbon Border Adjustment Mechanism (CBAM), according to industry traders who spoke on Wednesday at the Carbon Forward conference in London.
AMERICAS
Canada announces plans to advance mandatory emissions disclosures
Canada will move forward with mandating climate-related financial disclosures for large, federally incorporated private companies, the federal government announced Wednesday, and also provided detail on progress towards a Canadian taxonomy for sustainable investment.
Canada commits C$10 mln to CDR services by 2030
Canada pledged Wednesday to spend at least C$10 million ($7.3 mln) by 2030 to procure CO2 removal (CDR) services as part of a national strategy to reduce and compensate emissions from governmental operations.
ARB boosts bi-weekly offset issuance by 73%, yet trails 2023 YtD
California regulator ARB’s latest issuance of compliance-eligible offsets still trails year-to-date (YtD) totals compared to 2023 levels by nearly 20%, agency data released Wednesday showed.
Washington’s APCR auction of 2024 sells one-third of permits at 41% premium despite looming programme repeal
Washington’s Allowance Price Containment Reserve (APCR) sale for the year sold about a third of the permits offered at a premium of about 41.2% compared to the secondary market futures price despite potential for the programme being scrapped by voters at the November elections, results published Wednesday showed, with traders debating how many and why any bidders had participated in the sale.
Industry lawsuit challenges California ARB’s zero emissions regulations for medium- and heavy-duty vehicles
Two industry associations filed a lawsuit on Tuesday against California regulator ARB for its medium- and heavy-duty vehicles rules, alleging that the stricter emissions standards are unconstitutional.
Permit delays among the biggest bottlenecks for US CCS projects
Uncertainty surrounding permit approval timelines for US carbon capture and storage (CCS) projects has become a major “pain point” for operators in the country and stifled much-needed progress in the industry, conference participants heard Wednesday.
US DOE announces $29 mln to fund 12 CCUS projects
The US Department of Energy (DOE) announced $29 million in funding for 12 carbon capture, utilisation, and storage (CCUS) projects on Wednesday.
Chile, World Bank launch carbon pricing programme, will support ETS
Chile and the World Bank have launched a multi-year programme to support the development and harmonisation of carbon pricing initiatives in the South American country, representatives of both entities announced at the Chile Carbon Forum in Santiago on Wednesday.
Climate finance drives Chile’s FDI to levels not seen in years, economy minister says
Chile is leading Latin America in per capita foreign direct investments (FDI) thanks to how attractive the nation has become as a climate finance destination, the country’s economy minister said Wednesday.
Argentina tackles voluntary carbon market law, ETS plans ongoing
Argentine legislators are drafting a national voluntary carbon market (VCM) law, coinciding with plans for an ETS, according to speakers at the Chile Carbon Forum in Santiago on Wednesday.
EMEA
Euro Markets: EUAs jump 4% as funds extend net short to highest since March
European carbon allowances rebounded on Wednesday as they snapped three consecutive loss-making sessions, eyeing key technical levels to the upside even as TTF gas prices continued to correct lower, while investment funds raised their net short position to the highest level since March.
ASIA PACIFIC
INTERVIEW: India can be massive carbon removals supplier, but lacks local demand
India has great potential to be a leader in the global supply of carbon removals credits, but the country is also facing a total lack of domestic demand for such credits, a carbon removals accelerator told Carbon Pulse on the sidelines of a carbon summit this week.
Shanghai unveils local voluntary methodology for salt marsh restoration
Shanghai has introduced a voluntary methodology for salt marsh restoration to create carbon credits under a regional offsetting programme.
Satellite data tool finds methane leaks could be higher than reported in Australia
Emissions from 20 methane leak hotspots could be twice the official number, according to a Canberra-based think tank that has examined the sites using a new satellite measuring tool offering granularity past the self reporting required of emitters under Australian law.
INTERNATIONAL
Denmark joins call to impose ‘solidarity levies’ on biggest polluting sectors
Denmark has thrown its weight behind calls for ‘solidarity levies’ to be imposed on sectors like shipping, aviation, and fossil fuel extraction, one month ahead of a UN climate summit that will be focused on agreeing a new global climate finance goal.
Renewables ramp up beyond policy plans but won’t hit COP28 target, IEA says
Renewable energy growth will be swift and large but still fall short of the commitment made at COP28 to triple penetration by the end of the decade even as it outpaces nations’ current ambitions, the International Energy Agency (IEA) said Wednesday in a renewables report.
Energy emissions will peak in 2024, but Paris goals still out of reach -report
Global energy-related emissions will likely peak in 2024 and start a sustained decline for the first time since the industrial revolution – yet global warming will remain on track to shoot past 2C, according to a report on Wednesday.
Green hydrogen costs may far exceed estimates once storage, distribution are factored in -report
Despite the growing interest in green hydrogen as a way to decarbonise hard-to-abate sectors, its high carbon abatement costs — driven largely by storage and distribution expenses — may hinder widespread adoption, according to new research.
VOLUNTARY
Verra publishes new cookstoves methodology
Verra replaced its prior cookstoves protocols on Wednesday, retaining the UN approach to calculate emissions reductions from its initial version, but eliminating opportunity for other devices such as ovens, heaters, and dryers, to generate voluntary carbon credits.
INTERVIEW: The key ingredients for selling cookstove credits at $35/t
Realism, ratings, and relationships are the key ingredients to attract investment in the voluntary carbon market, the buyer of cookstove credits at $35 per tonne told Carbon Pulse this week.
Verra, market stakeholders to launch Chilean carbon group
Chilean voluntary carbon market (VCM) stakeholders are launching a national carbon association in partnership with VCM standard and registry Verra, as per an announcement at the Chile Carbon Forum in Santiago on Wednesday.
Climate tech firm launches spin-off for carbon capture and fertiliser production
A Swiss climate technology company has launched a new entity that will take over key projects, such as transforming sulphur into ammonium sulphate fertiliser and developing carbon capture solutions, it announced on Wednesday.
AVIATION/SHIPPING
Global tax on aviation, shipping could raise $200 bln annually by 2035 -IMF
International transportation, especially aviation and shipping, must be “urgently taxed” as that would raise up to $200 billion a year in revenues by 2035, potentially tripling current global climate finance, a paper released by the International Monetary Fund (IMF) has found.
LATAM Airlines supporting carbon, biodiversity projects while in search of SAF -panel
LATAM Airlines is looking to support carbon and biodiversity projects in Latin America as it strives to meet its sustainability goals without any regional sustainable aviation fuel (SAF) at its immediate disposal, the airline’s sustainability manager said Wednesday.
BIODIVERSITY (FREE TO READ)
BRIEFING: Australia’s draft plan of attack on feral cats a good step forward, but implementation and cash will be key
Australia is finalising an updated battle strategy for its war on feral cats, one of the biggest drivers of native mammal extinctions on the continent, but experts say how the plan is implemented and the funding behind it will be the key to victory.
Climate Impact Partners, Deloitte launch programme to fund UK seagrass restoration
Voluntary carbon market experts Climate Impact Partners and Deloitte launched on Wednesday a programme to unlock financing towards seagrass recovery in the UK, as part of a wider seagrass carbon code currently under development in the country.
UK govt agency finds most ecosystems at higher risk
Almost all the UK’s ecosystem assets are at high or medium-high risk, requiring public and private investment, the government’s nature department said in a report published on Wednesday.
Biomass production threatens 10 mln ha of forests in Indonesia, study says
Over 10 million hectares of intact tropical forests in Indonesia are threatened by biomass power developments, including 127 Key Biodiversity Areas, according to a report.
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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!
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.
Calyx Webinar – How to buy high-quality carbon credits – Nov. 6, 1100 EST (1600 GMT): Buying quality carbon credits in today’s carbon market can feel like an obstacle course full of hurdles and roadblocks, but despite challenges, many sustainability leaders have done this successfully. We gathered experienced carbon market participants from across industries to share their processes, advice and secrets to success. If you’re purchasing carbon credits in the next six months, this is a discussion you won’t want to miss. Register here. If you register but cannot attend live, you will receive an on-demand recording after the webinar.
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BITE-SIZED UPDATES FROM AROUND THE WORLD
INTERNATIONAL
Steering role – Together with South Africa, Norway will lead the negotiations on emission cuts during the COP29 climate summit, it was announced Wednesday. The Azerbaijani presidency requested that Climate and Environment Minister Tore O. Sandvik and South Africa’s Environment Minister Dion George lead the negotiations on emission reductions. Given that in 2025, all countries must submit new climate targets to the UN, COP29 must send a strong signal to countries that the new targets must take us much closer to the Paris targets than those currently on the table, said Sandvik.
Limited impact – Carbon removal can do nothing to mitigate aspects of climate change like sea level rises and changes in ocean circulation, even if it helps to slow warming by reducing greenhouse gas already accumulated in the atmosphere as stated by the IPCC, according to new research. It showed cutting temperatures from their peak could also prove harder than anticipated even if CDR is scaled up, particularly as melting permafrost and shrinking peatlands release methane and drive further warming. Reversing a small overshoot of 0.1C would require the removal of about 220 bln tonnes of CO2, while an overshoot of 0.5C – also consistent with the IPCC’s best-case scenario – would need more than a trillion tonnes removed, said the authors. “Only through ambitious emissions reductions in the near term can we effectively reduce the risks from climate change,” they concluded.
EMEA
Pre-COP – With just one month to go until the COP29 UN climate summit in Baku, EU Commissioner for Climate Action Wopke Hoekstra will participate in a pre-COP meeting session on Thursday and Friday. In Baku, Hoekstra will present the conclusions on climate finance approved by EU finance ministers earlier this week. Meanwhile, the EU’s final negotiating mandate for COP29 is expected to be agreed by the 27 Environment ministers on Oct. 15. In Baku, Hoekstra will hold many bilateral meetings with other negotiators.
Losses from EUDR delay – The 12-month delay decided for the EU’s anti-deforestation regulation (EUDR) will bring losses to companies that have paid to source compliant agricultural produce, industry groups have said. EUDR was expected to apply as of Dec. 30, and would have impacted imports of cocoa, coffee, cattle, soy, oil palm, timber, rubber and related products like chocolate and leather. Fediol, a trade group representing vegoil and oilmeal producers said its members – which include trading giants such as Cargill and food processors like AAK – will suffer losses from the delay after paying premiums to secure raw materials that comply with the law. “It’s a financial loss they are making by having been ready on time,” Fediol director general Nathalie Lecocq told Reuters.
New hire – Emma Pinchbeck, who is stepping down as CEO of Energy UK, will join the Climate Change Committee (CCC) as chief executive on Nov. 11. She will guide the release of the Seventh Carbon Budget advice in early 2025 and the fourth Climate Change Risk Assessment independent assessment in 2026, CCC said in a press release. The reports will provide recommendations on the UK’s carbon emission limits for 2038–2042 and strategies to address climate risks across the country. Before her tenure at Energy UK, Pinchbeck served as deputy CEO of Renewable UK and was head of climate change at WWF-UK. “She has brought a notably objective approach to the discussion of decarbonising UK energy and has strong relationships within the climate and energy sectors,” the press release said.
We deserve better – The African Petroleum Producers Organisation (APPO) has said that it opposes the EU’s Carbon Border Adjustment Mechanism (CBAM), as it would stifle the continent’s industrial and economic development. The organisation, which comprises African oil producing countries, has warned of the potential consequences of the EU’s carbon tax urging representatives attending the upcoming COP29 in Baku to push back against the tax on carbon-intensive imports. The Secretary General of APPO called for a moratorium on CBAM advocating for a fairer approach to the global energy transition, adding that “Africa cannot develop without fossil fuels and [Africa] deserves better”. He also called on developed nations to take responsibility for their historical emissions, rather than imposing trade barriers on developing countries.
Innovative projects – KfW presented a new initiative for storing CO2 via new and biodiverse forests at the Hamburg Sustainability Conference on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ). The FOREST initiative creates incentives for the private sector to invest in newly created natural sinks such as forests, mangroves, and moors. The initiative’s first international project is the FOREST Innovation Facility, which promotes novel projects that want to use the carbon market but have not yet received sufficient funding. The project is being implemented by the International Union for Conservation of Nature (IUCN) and BMZ has provided €9 mln for the initial phase.
ASIA PACIFIC
Big spender – Australian miner Rio Tinto announced it will buy US-based Arcadium Lithium for $6.7 billion, Reuters reported. The deal will make Rio the world’s third largest miner of the metal used in EV batteries. It is part of Rio’s focus of evolving into a processor of high end, low carbon raw materials needed for the energy transition. While the market is currently awash with lithium, Rio CEO Jakon Stausholm said the company is confident that long-term demand will be strong. The company is paying $5.85 per share in cash for Arcadium, a nearly 90% premium to its closing price of $3.08 per share on Oct. 4. Arcadium has lithium mines, deposits, and processing facilities in Argentina, Australia, Canada, and the US, which Rio will gain access to. Tesla, BMW, and General Motors, are among the company’s customers.
Reverse – Palm oil deforestation is on the rise in Indonesia, ending nearly a decade of decline, according to research conducted by the Stockholm Environment Institute (SEI). Four provinces in Kalimantan were found to account for 72% of deforestation between 2018 and 2022, while Sumatra saw a 3.7-fold increase compared to 2020. Palm oil production is considered a major contributor to Indonesia’s climate impact, as the sector emits 220 million tonnes of GHG emissions annually, representing almost one-fifth of the country’s total emissions in 2022.
Not enough clarity – A group of institutional investors managing over $3.5 trillion in assets has urged South Korea’s Financial Services Commission (FSC) to establish a clear roadmap for sustainability-related disclosures and to implement a phased approach to climate disclosures by 2026, according to the Korea Times. The Korean government earlier this year announced draft guidelines for sustainability-related disclosures, though without disclosing key details such as the timing of the mandatory disclosures.
Feedback needed – Taiwan is seeking public comments for a policy proposal that could determine the rates for the island’s upcoming carbon levy scheme, according to a notice published Tuesday. An environmental ministry committee has finalised rate recommendations for the carbon fee scheme, with a starting price of NT$300 ($9.32) per tonne of CO2e for hundreds of regulated emitters. In order to accelerate the implementation of the carbon pricing programme, the notice period has been shortened to 7 days, the ministry said.
Waiver – The temporary fee waiver on the Australian Securities Exchanges’ (ASX) Environmental Futures trading products will come to a close on Oct. 31, however the trading fee will be reduced to A$15 ($10.07) per lot, it announced in a LinkedIn post. The environmental futures products sees Australian Carbon Credit Units and New Zealand Units traded over a 5-year forward curve, however there has been limited activity, since it was launched in late July.
AMERICAS
Fuel forward – Brazilian President Luiz Inacio Lula da Silva signed into law Thursday the so-called Fuel of the Future bill Tuesday, which creates national programmes for green diesel, SAF, and biomethane, and increases the blend of ethanol and biodiesel with gasoline and diesel respectively, amongst other provisions. Regarding fuel mixes, the text establishes that the margin for blending ethanol with gasoline will be 22% to 27%, and may reach up to 35%. Currently, the mixture can reach 27.5%, with at least 18% ethanol. As for biodiesel, which is blended with fossil diesel at 14% since March of this year, one percentage point of blending will be added annually from 2025 onwards until it reaches 20% in Mar. 2030. Regarding national programmes, the bill creates the National Sustainable Aviation Fuel Program, the National Green Diesel Program, and National Program for the Decarbonization of Natural Gas Producers and Importers and Biomethane Incentives. The first requires airlines to use 1% SAF starting in 2027, increasing one percentage point annually until reaching 10% in 2037, while the second will create an annual minimum quantity of green diesel to be mixed with diesel of fossil origin. The third programme will entail the definition of annual targets in the natural gas sector for the use of biomethane, which will come into force in Jan. 2026. Finally, the bill also establishes a regulatory framework for CCS, amongst other provisions.
Pedal to the metal on gas price bill – California’s Senate Appropriations Committee approved Gov. Gavin Newsom’s (D) proposal to limit gas price spikes on Tuesday, as part of the special session convened by the chamber for this week. Assembly Bill X2-1, advanced in the chamber last week, would require refineries to store a minimum of gasoline to prevent price spikes during refinery maintenance periods. The Senate is poised to vote on the bill on Friday. On Monday, Senate President Pro Tem Mike McGuire struck AB X2-9 from the agenda, which would direct the state to study the impacts of increasing the ethanol blend in gasoline in an effort to expand fuel supplies.
Clearing the road for truck emissions rules – The Oregon Department of Environmental Quality (DEQ) will consider temporary rules to adopt minor changes from California’s Advanced Clean Trucks regulation during its Nov. 21-22 meeting. Oregon opted into California’s vehicle and truck emissions standards in 2021, along with 12 other states. The DEQ will also consider delaying the start of its Heavy-Duty Low NOx Omnibus Rule until 2026 – the rule is also identical to California ARB rules for new medium- and heavy-duty vehicles sold in Oregon.
Climate litigation – Multnomah County, Oregon added a gas utility as a defendant to its 2023 climate lawsuit on Monday, making NW Natural the first utility to be accused of deceiving the public about the dangers of burning fossil fuels, E&E News reported on Wednesday. NW Natural, a publicly traded utility, paid for advertisements about their commitment to a “carbon neutral future”, and allegedly distorted lower emissions initiatives “as an infringement on a consumer’s ‘freedom of choice’”, according to the filing, including through the dissemination of gas-related activity books donated to schools.
VOLUNTARY
Green concrete for Africa – Amazon’s Climate Pledge Fund and the giant Holcim Group, the Swiss-headquartered building material supplier, are investing into two starts ups, 14Trees and Paebbl, that will combine sustainable building in Africa with concrete made from the mineralization of carbon. 14Trees is a 3 dimensional printing joint venture by Holcim and British International Investment, which was established in 2016 to accelerate the provision of sustainable construction in Africa. The company has pioneered the delivery of the first 3D-printed house in Africa, the world’s first 3D-printed schools, and a large 3D-printed neighbourhoods. Stockholm-based Paebbl turns turns CO2 into concrete. “By investing with Amazon’s Climate Pledge Fund into 14Trees and Paebbl, we can scale up these pioneering technologies to push the boundaries of sustainable building, from 3D printing to making concrete a carbon sink,” said Nollaig Forrest, Chief Sustainability Officer of Holcim.
Greenwashing fades – The number of companies linked to greenwashing worldwide declined by 12% year-on-year, although the number of high-risk greenwashing cases rose by a third, according to an annual report by ESG data company RepRisk. This is the first time in six years that the number of overall greenwashing cases declined, and it is likely to be the result of increased regulatory measures as well as ‘greenhushing’ – whereby companies opt not to publicise their net zero targets. The decline indicates that companies are increasingly cognisant that greenwashing is a material offence, and are taking steps to mitigate exposure, RepRisk said. But the 30% increase in high-risk cases suggests that while public perception is having an effect on overall greenwashing, more regulation and transparent data is needed to reduce the number of severe incidents.
INVESTMENT
Transition indices – The Glasgow Financial Alliance for Net Zero (GFANZ) has launched a public consultation paper on voluntary guidance on the development of “transition-informed” indices to support the global transition to net zero. The consultation paper outlines potential guidance index participants (index providers, data providers, stock exchanges, asset owners, asset managers and other investors) may take to voluntarily and independently develop and adopt indices that support real-economy decarbonisation. The consultation paper proposes draft guidance to help index participants develop and adopt these “transition-informed” indices, creating a pathway for index participants to engage with companies now and help support companies’ real-economy decarbonization. The consultation is open Jan. 9, 2025, and feedback received will inform the final paper, to be released in late Q1 2025. Provide feedback here.
AND FINALLY…
New NFL initiative – Carbon management company California Resources Corporation (CRC) and NFL team the Los Angeles Rams have joined forces to launch the “Football without the Footprint” initiative, which will involve the Rams offseting the emissions of their operations in coming years. The team will purchase locally-source carbon credits from CRC’s Carbon TerraVault, which develops CCS projects in the Golden State. The credits are expected to come from a variety of sources, CRC said, including potentially from a future DAC hub as well as BiCRS projects. Through the initiative, CRC and the Rams also will work together to educate fans and local communities about the importance of carbon management technologies and meeting California’s energy needs with local, responsibly sourced energy, the pair said. In addition to potential carbon offsets, the Rams will have the opportunity to reduce the team’s CO2 emissions by purchasing hydrocarbons produced from CRC’s Los Angeles Basin operations.
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