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TOP STORY
UN body skips over Paris negotiators in a bid to secure consensus on Article 6.4
The UN body mandated to determine rules governing the Paris Agreement’s Article 6 opted early Thursday to bypass negotiators and bring its standards for carbon methodologies and removals into force – in a “risky” and “bold” move that was widely welcomed for its potential to drive agreement at next month’s COP29, despite concerns about its long-term implications.
CARBON FORWARD LONDON
Gold Standard set to publish early coal decommissioning carbon methodology in 2025
Gold Standard plans to next year publish a methodology that will credit early coal plant decommissioning, a senior member of the organisation said on Thursday.
AMERICAS
PREVIEW: Next US administration to determine future path of domestic, international environmental policy focus
With under a month to US elections, Carbon Pulse’s North American team has sourced insights from a wide network of policy analysts and industry stakeholders on some of the key environmental issues potentially at stake depending on which candidate occupies the White House next year.
WCI Markets: CCA secondary market activity intensifies awaiting ARB next steps
Futures and options trade of California Carbon Allowances (CCA) surged across ICE and Nodal exchanges over the five day stretch as markets await programme updates, while muted activity in Washington Carbon Allowances (WCA) continued through the period.
US DOE releases CO2 management strategy for remaining IIJA funding
The US Department of Energy (DOE) released a draft of its annual carbon management programme strategy on Thursday to show its pathways for deploying CO2 capture, transportation, conversion, and storage technology, as the agency looks toward allocating the remaining funding from the Infrastructure Investment and Jobs Act (IIJA).
Industry members call for strengthened 45Q incentives to support CCS
The US carbon capture and storage (CCS) sector needs higher credit values and certainty beyond the current crediting timeline to catalyse growth, conference attendees heard this week.
Activating investment in Chilean carbon projects will require ‘signals of clarity,’ IETA rep says
Chilean climate policies must send clear signals of stability in order to unleash additional investments and unlock the country’s potential for nature-based projects, an IETA representative said Wednesday.
EMEA
2040 climate target, role of nuclear on the agenda at EU meeting on COP29
The European Union’s 27 climate and environment ministers are set to adopt their negotiating mandate for the November UN climate summit in Baku, with only two final discussion points on the table, French officials have said.
CCS plans could leave European taxpayers with €140 bln bill -report
Taxpayers in Europe risk having to foot a collective €140 billion bill for risky carbon capture and storage projects, as governments in the EU and the UK bet on CCS to reduce greenhouse gas emissions from hard-to-abate sectors, financial analysts have warned.
ExxonMobil sues the Dutch government over early gas phaseout
US-headquartered ExxonMobil is suing the Dutch government for its decision to accelerate the closure of Groningen, Europe’s largest gas field, it announced this week.
UK rolls out ‘cap and floor’ scheme to draw investment in long-duration energy storage
The UK government announced on Thursday a new “cap and floor” scheme to incentivise billions in private investment in long-duration energy storage (LDES) technologies to support renewable power integration and boost energy security.
Multi-donor initiative pledges $2.5 bln to help Cameroon halt deforestation
A UN-backed multi-donor coalition this week committed $2.5 billion over the next decade to support Cameroon in transitioning away from traditional land-use practices towards deforestation-free production models.
Germany should scrap its national carbon system’s one-year trading phase -energy association
Germany’s main energy industry association has said the country should keep the price of its national heating and transport carbon system, BEHG, fixed until the new EU-wide heating and transport emission trading system (ETS2) kicks off in 2027.
Welsh farmers oppose mandatory tree planting targets, call for better financial incentives
The proposal to mandate a minimum 10% tree planting cover on farms in Wales under the Welsh government’s Sustainable Farming Scheme for carbon, biodiversity, and climate adaptation reasons is “the largest barrier” to entering the scheme as it currently stands, according to the sector’s trade union.
Euro Markets: EUAs gain a further 5% on TTF gas surge, technicals
European carbon prices settled nearly 5% higher on Thursday, building on strong Wednesday gains, as they tracked a bullish, nervous TTF gas futures with participants highlighting a return to correlation between the two markets, which pushed the benchmark EUA contract past multiple key technical resistance levels.
ASIA PACIFIC
Korean trade ministry proposes sub-rules for CCUS project development
South Korea has proposed a set of sub-rules to supplement the country’s national law for the development of carbon capture, utilisation, and storage (CCUS), specifying facility standards for project operators.
Exchange sets out to create ASEAN regional carbon market framework
Bursa Malaysia, the Malaysian stock exchange, is pushing for a common carbon framework for the Association of Southeast Asian Nations (ASEAN) region, it announced Thursday.
Japanese offset developer secures local partners for expansion in Thailand
A Japanese offset developer has secured partnerships with local partners to expand its presence in Thailand’s voluntary carbon sector.
INTERNATIONAL
Qatari organisation selects first Article 6 project for ITMO auction
A Qatar-based organisation has selected a first Article 6 project for inclusion in an Internationally Transferred Mitigation Outcomes (ITMOs) auction on a blockchain platform, it announced Thursday.
VOLUNTARY
Oil and gas giant secures 110k ha offshore CO2 storage lease in US Gulf Coast
A US-based oil and gas multinational announced Thursday it has won a lease for 271,000 acres (110,000 hectares) for an offshore CO2 storage site in Texas state waters in the Gulf of Mexico.
New carbon capture partnership to explore steelmaking decarbonisation in India
A UK carbon capture firm will collaborate with an Indian steelmaker and a global mining company to speed up the deployment of carbon capture technology to decarbonise steel in India, it announced on Thursday.
Gold Standard seeks carbon project developers to pilot new digital MRV tool
Gold Standard is seeking carbon project developers to test run its new digital measurement, reporting, and verification (dMRV) tool that will automate data collection and help streamline emissions reporting.
AVIATION/SHIPPING
INTERVIEW: US SAF deployment slowed by regulatory inefficiencies
Current US policy incentives fall short of supporting sustainable aviation fuel (SAF) rollout, prompting producers to target markets with mandates in the near-term, industry members told Carbon Pulse.
BIODIVERSITY (FREE TO READ)
PREVIEW: High expectations that COP16 can boost demand for biodiversity credits
Scaling the voluntary biodiversity credit market, including through establishing a global framework to ensure integrity, will be among the core topics of discussion at the upcoming COP16 in Colombia, as standards and early movers see the summit as an opportunity to unlock corporate demand.
World nears dangerous tipping points as wildlife populations collapse, WWF says
The decline in global wildlife populations accelerated between 2018 and 2020, according to a scientific assessment published on Thursday by the WWF, which warned that the world is fast approaching irreversible tipping points for nature and climate.
ANALYSIS: Australia’s environmental credibility contrasts good intentions, summit delegates say
Attendees of Australia’s first Global Nature Positive Summit lauded the government for hosting the event, but the current political troubles it faces and lingering questions over how to incentivise private sector investment are not going away.
African nature credit buyer’s club to launch with target of ‘millions of dollars’
The BIRA Coalition has announced it is forming a buyer’s club that aims to raise millions of dollars through nature credits generated by large-scale projects in Sub-Saharan African countries, Carbon Pulse has learned.
Commonwealth states to launch first-ever joint ocean declaration at upcoming Samoa meeting
Fifty-six member countries of the Commonwealth plan to make a joint declaration on ocean protection during the upcoming association’s meeting in Samoa, the first ever hosted by a Pacific Island nation.
Communities pay the price for biodiversity offsets, report says
The “dangerous illusion” of biodiversity offsets damages communities and ecosystems, as the value of nature cannot be numbered, said a report published on Thursday by a forest coalition.
Biodiversity Pulse: Thursday October 10, 2024
A twice-weekly summary of our biodiversity news plus bite-sized updates from around the world. All articles in this edition are free to read (no subscription required).
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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
Pre-COPing – Government officials started the two-day Pre-COP meeting in Baku on Thursday, in an effort to advance negotiations on the key points due to be agreed at COP29 next month – namely, the New Collective Quantified Goal (NCQG) for climate finance, the Azerbaijani COP presidency said in a statement. The NCQG needs to meet the needs of developing, least developed, and small island developing countries and should mark a “substantial increase” from the current goal of $100 bln per year, President Ilham Aliyev said in a speech. The presidency is seeing some signs of “possible convergence” on parts of the goal, but parties need to take seriously their responsibility for identifying a number over a timeframe and present solutions, added COP29 President Mukhtar Babayev. Qualitative elements of the finance goal, like transparency and accessibility, are also necessary.
EMEA
Money in the wind – The European Investment Bank and Italian bank Intesa Sanpaolo have agreed on a new initiative with the potential to unlock investment of up to €8 bln for the European wind industry. It forms part of a €5 bln wind power package, an investment plan announced at COP28 in Dubai and activated in July, and it is the first agreement under this package supported by InvestEU. The programme aims to support the production of 32 GW of the 117 GW of wind capacity needed to enable the EU to meet its goal of generating 45% of its energy from renewable source.
DESNZ unveiling – The UK Department for Energy Security and Net Zero (DESNZ) has unveiled the board of commissioners for the 2030 clean power mission. They will work directly with Chris Stark and meet regularly throughout the autumn, with their expertise helping to shape the clean power action plan which will be ready for publication by the end of the year. They are: Nick Winser, current energy commissioner on the National Infrastructure Commission, Tim Pick, a passionate offshore wind advocate, Juliet Davenport, founder of Good Energy, Robert Gross, director of UKERC and professor of energy policy and technology at Imperial College, Craig Bennet, CEO of The Wildlife Trusts, Jo Coleman, experienced energy exec, Lucy Yu, CEO and founder at Octopus’s Centre for Net Zero, and Simon Harrison, a leading voice in public policy.
Ballooning costs – EDF is holding talks with investors over funding for the Hinkley Point C nuclear power plant under construction in the UK, as it grapples with the project’s ballooning costs, Bloomberg reports. The French utility is seeking to raise as much as £4 bln through a bespoke financial instrument that would give investors a stake in Hinkley, and they would be reimbursed if the construction isn’t completed, according to people familiar. The cost of building the two Hinkley reactors is expected to reach £47.9 bln in current terms, partly due to labor shortages and supply chain issues. EDF’s bill for the project has increased after China General Nuclear Power, its partner in the Somerset project, stopped funding its minority share of project at the end of 2023, having fulfilled its contractual commitment. Talks are underway with sovereign wealth funds and large infrastructure funds, with utility Centrica one of those considering investing, the people said. The first reactor at Hinkley Point C is scheduled to become operational in 2030 — five years later than initially planned — under EDF’s base-case scenario.
“Bonkers” biomass sourcing – A plan by the UK government to burn biomass imported from countries including North Korea and Afghanistan has been critiqued for undermining the country’s climate strategy. The bioenergy resource model published in late summer calculates that only a big expansion in the import of energy crops and wood from a surprising list of nations would satisfy UK plans to meet net zero, the Guardian reports. Biomass energy is likely to continue to play a key role in the government’s clean energy strategy, however about a third of the biomass used in the UK is imported and new potential domestic and overseas sources are needed to meet growing demand. The resource model suggests that the UK import biomass from a list of “improbable” countries given it does not consider deforestation problems and differences in foreign governance, said a policy observer. The debate about the true sustainability of burning wood for energy continues, together with the use of carbon capture and storage, and the assignment of subsidies.
ASIA PACIFIC
Coal, no more – Malaysian Deputy Prime Minister Fadillah Yusof has said that the country is all set to transition away from coal power and there are no new coal plants in the pipeline. He added that the efforts are in line with the country’s commitment to transition away from fossil fuels and embrace cleaner and sustainable energy alternatives. The Southeast Asian nation aims to increase the share of renewable energy in the national electricity mix to 40% by 2035 and 70% by 2050, official media outlet Bernama reported.
Forest support – The Korea Forest Service on Thursday announced it has opened a Korea-Laos Overseas REDD+ Support Center in Vientiane, as the two nations seek to enhance cooperation to reduce carbon emissions through improved forest management and conservation, the Korea Herald reports. The new centre will be jointly operated by both nations and provide support for initiatives such as projects designed to generate carbon credits under Article 6 of the Paris Agreement.
Low-emission leather – The Council of Scientific Industrial Research-National Institute for Interdisciplinary Science and Technology (CSIR-NIIST) in India has entered into a collaboration with Tata Steel to reduce carbon emissions from leather production. The project is part of carbon capture, utilisation, and storage (CCUS) mission of CSIR. Under the agreement, Tata Steel will help CSIR evaluate ceramic sorbents under conditions of emission from blast furnace top gas and stove waste gas. In order to reduce emissions from leather production, agricultural residues such as groundnut shells and corn husks, typically discarded, will be upcycled into leather-like materials, providing an alternative to both animal-derived leather and synthetic versions, which are often petroleum-based.
Unilateral and arbitrary – India’s Finance Minister Nirmala Sitharaman has called the EU’s Carbon Border Adjustment Mechanism (CBAM) and Deforestation rules “unilateral” and “arbitrary” measures, which will hurt developing nations such as India and stifle their economic growth and green transition goals, the Hindu reported. However, she added that the imposition of CBAM will not affect matters related to the Free Trade Agreement with the EU, as the “trade act is an important component of wanting better trade relations”, however, India has and will continue to voice its concerns about the CBAM as it poses unforeseeable risks for India, which is working towards its net zero commitments.
On-the-job training – Federal and provincial government officials in Pakistan have received training through multiple events organised under the Supporting Preparedness for Article 6 Cooperation (SPAR6C), a five-year programme funded by the German government. Through SPAR6C capacity building workshop, provincial and federal planning and development officials received training on integrating carbon markets in government project approval. Pakistan has set a target of an overall 50% reduction of its projected emissions by 2030, with a 15% reduction from the country’s own resources and another 35% reduction conditional to the provision of international finance. Since 2022, the programme has held seven capacity building trainings with relevant government officials and potential project owners and investors.
Deeper ties – South Korea will double its cooperation funds with the Association of Southeast Asian Nations (ASEAN) to $48 mln by 2027 to support key projects in the region, according to Yonhap. The two sides will push for comprehensive cooperation covering a wide range of areas, including clean energy and supply chains. In the clean energy sector, they will cooperate to reduce carbon and methane emissions under the $19 mln ASEAN-Korea Cooperation on Methane Mitigation project over the next three years, the Yonhap report said. In addition, South Korea and Laos will pursue joint forestry initiatives to reduce carbon emissions. The Korea Forest Service and the Laotian forestry ministry this week launched a joint REDD+ support centre in Vientiane, in order to manage carbon projects, KBS reported.
Now you know – Swedish climate fintech Doconomy has launched a carbon footprint measurement feature within Citibank Hong Kong’s newly introduced digital wealth management app Wealth360, it announced Thursday. Users can monitor their carbon emissions according to various spending categories and compare their carbon footprint against the Hong Kong average, gaining insights into how their lifestyle choices impact the environment, Doconomy said.
Banks back LNG – Santos has finalised its news syndicated bank loan of $800 mln to extend the life of an Australian LNG plant it operates and has a majority stake in. Darwin LNG can export up to 3.6 million tonnes of the chilled gas a year, and is expected to start taking gas from the Barossa field from next year after its prior source Bayu Undan reached the end of its life this year. Bayu Undan wil be turned into the world’s largest carbon capture and storage (CCS) facility, Santos has said. CEO Kevin Gallagher said it demonstrated the banks’ recognition of LNG as a critical part of the energy transition and willingness to support the LNG industry. “With these facilities in place, Darwin LNG is well-funded to complete the life extension works scheduled for mid-2025 and it positions Darwin LNG to consider future expansion of this important infrastructure, including through the potential provision of third-party carbon capture services in Darwin,” he said.
Mekong low-carbon rice – Vietnam’s hopes for carbon credits from lower carbon rice planting continues with local news reporting that the government sees opportunity for the Mekong Delta in particular, one of the most prolific rice growing regions of the nation. Vietnam News Agency reported this week that Director General of the International Cooperation Department of the Ministry of Agriculture and Rural Development Dr Nguyen Do Anh Tuan told an event carbon credits will be a key measure of success in sustainable rice farming, given the heavy methane footprint of the staple crop. The same week another government official ruled out international participation in the nation’s pilot phase of its mandatory carbon trade scheme. It will go live next year and run to 2028, before a full emissions trading scheme begins.
Carbon cooperation – New Zealand Climate Change Minister Simon Watts announced he will chair negotiations on carbon markets at COP29 in Dubai, alongside Singapore’s Minister for Sustainability and Environment, Grace Fu. The pair will co-chair negotiations that will finalise details for how countries can cooperate on carbon markets under the Paris Agreement, Watts said, adding it was an honour to be selected.
AMERICAS
Washington allowance allocation – The Washington Department of Ecology (ECY) published Thursday an updated electricity utility allowance allocation schedule, which the department said replaces the previous information posted for the 2025 and 2026 vintages and incorporates the asset-controlling supplier emission factors approved by ECY for data year 2025. All but one electric utility – Avista – saw their allocations for the two years changed. ECY also announced it will host a meeting on Oct. 16 from 1030-12:00 PST to provide an overview of the method and updates for calculating no-cost allowance allocation for electric utilities.
No change – The non-partisan Canadian Parliamentary Budget Office (PBO) released an updated analysis on the impacts of the national carbon tax Thursday reaching similar conclusions as its Mar. 2023 economic analysis of the federal carbon levy. In a Thursday press release, the PBO said estimates of household net costs incorporating fiscal and economic impacts published in these distributional analyses reflected the broader economic impact of federal carbon pricing. When considering both fiscal and economic impacts, the PBO analysis found that the average citizen in each of the backstop provinces (that is, all provinces except British Columbia and Quebec) will see a net cost from the federal fuel charge, as well as lower income. The PBO also said this impact distributed in a progressive manner, with a household in the lowest income quintile seeing a net gain, compared to its counterpart in the highest income quintile seeing the largest net cost. The PBO said the findings were largely consistent with the Mar. 2023 report, although net costs came in lower overall. The body acknowledged earlier this year an error in the previous analysis. Carbon pricing has become a hot button political issue in the country.
Edmonton oilers – While experts at the Net Zero Edge conference in Ottawa discussed the merit of a carbon budget approach to emissions reductions in Canada, political challenges continue to stifle decarbonisation in some of the highest-emitting sectors, even with the public-private partnership central to a carbon budget framework, attendees heard Thursday. Staff from the City of Edmonton, which is one of few jurisdictions with a carbon budget, said that even though the fossil fuel industry understands the need to more accurately conduct proper carbon accounting of its initiatives, the financing needed to take “very significant action in some of those sectors” is difficult to come by. “Politically, in Alberta, the fossil fuel industry is very strong,” staff added. The City of Edmonton’s carbon budget is tied to its four-year fiscal budget that is presented to city council and currently has a goal of reducing its community emissions by 50% by 2030, relative to a 2005 baseline, ultimately to achieve carbon neutrality by 2050.
VOLUNTARY
Kenyan forestry – The Green Carbon Fund will purchase 125,000 carbon credits from the Hongera Reforestation Project in Kenya developed by DGB Group for a total purchase price of €2.5 mln, according to an announcement Thursday. The credits will be sold for €20/tonne, with half of the total payment made at the transaction close and the remaining half upon credit delivery. The units will be distributed from 2030 to 2034, equating to an annual offset of 25,000 tonnes of CO2. This funding will allow the project to scale to 10,800 hectares planted, while also delivering biodiversity and community benefits. Hongera aims to restore 27,800 hectares of degraded land in Kenya by planting 10.7 mln trees.
DAC development – Bill Gates-founded investment and advocacy firm Breakthrough Energy published a blog Thursday providing a series of US policy recommendations for building the emerging DAC industry. According to the blog, demand is a key issue in developing the DAC market, and the US Department of Energy (DOE) could help address this by including funding for demand-side support, as it has done with similar programmes for hydrogen. One way it could boost demand would be to add funding to the $35 mln CDR Purchase Pilot Prize announced last year, Breakthrough Energy said. Additionally, the organisation suggested deployment of reverse auction model, similar to how is done in Denmark, where companies bid for subsidies on a per-tonne basis. This would allow companies of all sizes to compete, with funding based on need, Breakthrough Energy said. Last month, the DOE announced $1.8 bln in funding for mid- and large-scale DAC facilities, following a previous $1.2 bln allocation to the technology in Aug. 2023. Last week, the DOE’s National Energy Technology Laboratory also announced $71 mln in support for regional DAC hubs.
AND FINALLY…
Flying footballers – Sport England’s chair, Chris Boardman, has criticised the flying habits of British football clubs, which have travelled more than 30,000 miles this year to play in non-competitive matches in the closed season. This year, 10 Premier League clubs flew to the US for friendlies, while Tottenham and Newcastle played a match in Melbourne three days after the final day of season. “I’m a pragmatist, not a moral absolutist,” Boardman said. “I don’t believe in outright bans on flying, but we all need to strike a much better balance. It is time for all of our top football clubs to step up, and put themselves on the right side of history.” (The Guardian)
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