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TOP STORY

Broken: Study reveals sharp decline in global land carbon sink in 2023

Last year saw a dramatic weakening of the global land carbon sink, the system that absorbs CO2 from the atmosphere, as the planet experienced record-breaking heat and severe droughts, a new study warns.

CARBON FORWARD EXPO LONDON

Integrity concerns still keeping voluntary carbon credit buyers at bay

Companies, banks, and governments need to take concrete steps to incentivise support for the voluntary carbon market (VCM) with persistent integrity concerns still holding buyers back, according to speakers at Carbon Forward Expo London last week.

EMEA

EU wants more countries to contribute to global climate finance goal

The EU is holding strong on its position that more countries need to contribute to the next global climate finance goal, with a plan to push for more money while ensuring that the bloc isn’t spread too thin, according to the general negotiating mandate for COP29 adopted by climate and environment ministers late on Monday.

Poland’s new ‘ambitious’ climate plan foresees sharp drop in coal use by 2040

Poland’s newly released national and energy climate plan for 2030 foresees a significant drop in coal use this decade and could potentially halve emissions emissions within the decade – 20% more than in the previous 2019 plan.

Integrating carbon removal credits into EU ETS makes moral and business sense, says BP

There is both a strong moral case and business case for integrating carbon removal credits from around the world into the EU ETS, a senior member of BP’s carbon team told a conference on Monday.

Euro Markets: Carbon extends gains amid renewed close links with natural gas

European carbon prices resumed their upward trend on Monday as participants continued their accumulation after last week’s short-squeeze rally was triggered by investment funds amassing the largest net short position since March, while energy markets posted steady gains amid forecasts for lower temperatures.

AMERICAS

US EPA challenges that power plant rules can allow coal, gas plants to continue with CCS

The US Environmental Protection Agency (EPA) denied Republican states’ allegations that its latest power plant emissions rules will impact grid reliability, the agency told a US federal appeals court in a filing on Friday.

US fund manager raises $80 mln for new forest conservation vehicle

A US-registered impact timberland and farmland fund manager has raised $80 million from a single investor in the first close of the latest forest conservation fund.

ANALYSIS: In ‘new school’ LATAM carbon markets, regulators push growth as ‘old school’ cracks down

Regulators in up-and-coming Latin American voluntary carbon markets (VCM) are working with the private sector to scale up operations, while market observers point to increasingly hands-on measures curbing the market in ‘old school’ VCM players like Colombia and Brazil.

Indigenous groups in Brazil claim lack of consultation on carbon credits

A group of Indigenous and community organisations in Brazil’s Para state has issued a public letter condemning the lack of consultation with them on a $180 million carbon credit deal.

LATAM Roundup: A big week for the Paris Agreement’s Article 6

The week ending Oct. 13, which saw the UN Supervisory Body (SBM) for Article 6.4 circumvent negotiators to help operationalise Paris carbon markets, also welcomed key Article 6 statements out of Chile, ranging from new projects to potential use cases for Paris Agreement credits.

ASIA PACIFIC

Judicial review filed against NZ govt for weakening vehicle emissions standard

A New Zealand advocacy group has launched legal action against the government over its decisions to weaken the country’s Clean Car Standard, it announced Monday.

New Zealand urged to take cooperative approach to addressing 2030 NDC challenge

Fresh analysis has highlighted the policy paralysis plaguing New Zealand in achieving its 2030 Nationally Determined Contribution under the Paris Agreement, urging it to adopt a more internationally cooperative approach.

New Zealand begins work to improve ETS for foresters

The New Zealand government will establish a Reference Group to drive better outcomes for the forestry segment of its emission trading scheme (ETS), it announced Monday.

Chinese regulators open to financial institutions participating in national carbon market

Chinese regulators have released guidance on the development of green finance in the country, outlining several policy targets including participation of financial institutions in the national carbon market and coordination among government agencies.

VOLUNTARY

VCM Report: Huge REDD trade lifts spirits, prices tick higher ahead of COP29

A huge REDD trade at a very low value bolstered volumes in the voluntary carbon market last week, and prices in general ticked higher as optimism picked up ahead of the climate talks in Baku next month.

All new CO2 emissions from large emitters must be removed, researchers argue

All new CO₂ emissions from countries with large volumes of historic emissions need to be removed, argues a paper penned by carbon removal experts.

SHIPPING

Under-prepared shipping companies may face hefty fines under FuelEU -consultancy

European shipping companies are not ready for the upcoming FuelEU Maritime regulation and could face significant fines, according to an independent shipping emissions analytics company.

LNG ship building outpaces gas demand, not compliant even with most conservative climate scenario, report says

The ‘golden age’ of gas and the expanding trade in LNG has led to a glut of carriers being built that is incompatible with even the most conservative climate outlook from the International Energy Agency, a think tank said Monday.

BIODIVERSITY (FREE TO READ)

Researcher flags solutions to biodiversity credit market challenges

Biodiversity credit markets must consider solutions spanning control sites, verification, and transparency to avoid the pitfalls of carbon credits, a researcher has said.

Non-profit considering global portfolio of biodiversity credit pilots

Fauna & Flora is considering supporting biodiversity credit initiatives in countries across the world, following an ongoing 500-hectare pilot in South Africa, Carbon Pulse has learned.

ICYM

POLL: Analysts slash EU carbon price forecasts as bearish factors continue to dominate

Analysts have slashed their forecasts for EU carbon allowance prices across the board, amid ongoing supply pressures and reduced demand from European power and industrial emitters.

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EVENTS

Supercritical Webinar – Defining Biochar Quality Nov. 5, 0900 EST (1400 GMT) – Essential insights for an impact-driven carbon removal strategy. Join Supercritical and panellists from Puro.earth, Isometric, and Exomad Green for this expert-led webinar. In the rapidly evolving landscape of carbon removal, biochar stands out as a method with immense potential. But not all biochar is created equal, and the lack of standardisation makes understanding quality critical for companies committed to having real climate impact. In this webinar, you’ll learn from industry leaders about the characteristics that set superior biochar apart, the tools and methodologies for quality assessment, and emerging trends shaping the future of biochar. Register

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.

cCarbon’s Canada Clean Fuels and Carbon Markets Summit 2024 – Nov. 7, Toronto: Canada’s clean fuels and carbon markets face significant uncertainty as policy, regulatory, and market dynamics evolve. To provide clarity, cCarbon is hosting modeling-driven Canada Clean Fuels and Carbon Markets Summit in Toronto for businesses and investors navigating this landscape. The event will begin with a plenary session focused on policy, followed by two specialized tracks exploring clean fuels and carbon markets in depth. With over 40 experts sharing insights and nearly 200 business leaders and regulators in attendance, this summit offers an exceptional networking and learning opportunity for anyone interested in Canadian energy and environmental markets! Find out more

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Job listings this week

• *AFOLU Project Development Specialist (f/m/d), KAYA Climate Solutions GmbH – Berlin/Luanda
• *Carbon NBS Specialist/Manager, NatureCo – Australia/Asia Pacific/Worldwide
• *Business Development, Carbon Markets (Market Intelligence), RepuTex Energy – Melbourne
• Commercial Manager, Korea, EcoSecurities – Korea
• Commercial Manager, Japan, EcoSecurities – Japan
• Greenhouse Gas Reporting & Verification Section Manager (WMS Band 2), WA State Department of Ecology – Lacey, WA
• Senior Technical Director, Global Heat Reduction, SCS Global Services – Remote, US & Canada
• Technical Manager, Global Heat Reduction, SCS Global Services – Remote, US & Canada

*Premium listings

See all listings or post a job

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BITE-SIZED UPDATES FROM AROUND THE WORLD

INTERNATIONAL

COP greenwashing – Azerbaijan’s hosting of COP29 next month means that for the third year running, the climate conference is being held in an authoritarian state with a dubious human rights record, and for the second year in a petrostate, writes the FT. The event takes place only 14 months after Azerbaijan chose to resolve by force a three-decade territorial dispute with neighbouring Armenia, while some politicians and campaigners claim that Baku’s attachment to oil and gas has made it highly reluctant to discuss a deal to “transition away” from fossil fuels. The country touts moves to expand renewable energy at home but says it is still boosting oil and gas output in large part to supply the EU, as an alternative provider to Russia. COP29 presents an opportunity for Azerbaijan to sign a peace deal with Armenia before the event begins, while international governments and attendees should use the event to press the country on its democratic record, the author suggests.

How to build an Article 6 registry – A new report by Climate Focus aims to offer guidance to host country governments around how to implement the emerging registry requirements for Article 6 transactions. Participating effectively in Article 6.2 will require having access to a robust registry for tracking the authorization, transfer, and retirement of Internationally Transferred Mitigation Outcomes (ITMOs), and the report aims to help countries navigate the technical complexity of these requirements.

IPCC authors’ pessimism – Most of the authors who have contributed to reports published by the Intergovernmental Panel on Climate Change (IPCC) believe that global warming will likely exceed the 1.5C and 2C warming targets, according to a recent survey. Instead, surveyors from Concordia University found that the median estimate among IPCC authors was 2.7C by 2100, which they wrote is “roughly what is expected if the world’s nations fail to implement new policies consistent with their targets and pledges”. Surveyors collected responses from 211 authors of past reports, which represents all IPCC working groups and all inhabited continents.

EMEA

Fossil fuel backing – A coalition of oil-producing African countries is seeking $5 bln to launch an ‘energy bank’ that would fund projects on the continent, as frustration rises about the reluctance of western institutions to fund fossil fuel initiatives due to environmental concerns. The World Bank stopped financing upstream oil and gas projects in 2019 while the African Development Bank does not put money into fossil fuel projects. The 18-member African Petroleum Producers’ Organization hopes the lender can begin operating in early 2025, said Haytham El Maayergi, executive vice-president of global trade at the African Export-Import Bank, a partner in the project. He insisted that “Africa’s context is totally different” because its resources have not been fully developed and it has barely contributed to climate change. The 18 countries in the Africa Energy Bank project, including Nigeria, Angola, and Libya, are each being asked to contribute $83 mln, raising almost $1.5 bln, to be matched by the African Export-Import Bank. The remaining funds will be sought from other sources including Gulf states, banks and other institutions, sovereign wealth funds, cash-rich traders, and international banks. The new bank will be based in Nigeria’s capital, Abuja. (FT)

Blue H2 really is brown – Europe’s blue hydrogen projects risk releasing emissions equivalent to those of Denmark or Switzerland each year, according to new analysis published on Monday. The analysis, based on IEA data and published in French newspaper Le Monde, looked at 46 blue hydrogen projects planned or already operating across the EU, UK, and Norway. It found that these projects – which rely on steam methane reforming to produce hydrogen – could together emit an estimated 38 MtCO2e each year due to methane leakage and related carbon emissions. 27 of the projects, new or due to come online up to 2035, would also consume an estimated 48 bcm per year of natural gas. “The evidence is clear: backing blue hydrogen means locking Europe into a future of climate-wrecking fossil gas,” said Dominic Eagleton, senior fossil fuels campaigner at Global Witness. On Sep. 30, the European Commission released draft rules to calculate GHG savings from low-carbon hydrogen.

Domino effect – Empowering the UK’s new national wealth fund (NWF) to issue green bonds on private markets could facilitate £14 bln of private sector investment for every £1 bln of Treasury funding, according to the New Economics Foundation. The think tank suggests that to support the growth of clean energy and to make a genuine impact on British industry, the NWF must to be empowered to issue its own bonds, much in the same way that Germany’s state development bank KfW is able to issue its own bonds and can also take out private sector loans. To deliver a transformative green industrial strategy including on green steel and green hydrogen, a financially empowered NWF is vital, it argues.

Billions for green biz – The UK announced billions of pounds worth of private investment for clean energy projects this week, coinciding with the government’s International Investment Summit on Monday. Spain’s Iberdrola plans to invest £24 bln over the next four years through its subsidiary Scottish Power, include £4 bln for the East Anglia 2 offshore wind farm. Another £8 bln is due to come from Orsted, and £2.5 bln from GreenVolt, for offshore wind farms, and £225 mln from SeAh Wind UK to build a wind technology manufacturing plant in northeast England, the government said. Macquarie plans to put £1.3 bln into new green infrastructure including its Island Green Power solar farm and ultra-fast charging points for EVs. BW Group plans to invest £300 mln into a new battery energy storage project, and Holtec £325 mln into a factory that would supply materials to the Hinkley Point C and Sizewell C nuclear power stations, which are under construction.

State aids – The EU Commission approved on Monday a €180 mln Lithuanian State aid scheme to support electricity storage and another €150 mln Walloon aid scheme to support local “energivore” businesses. The purpose of the first is to smooth the integration of renewable sources and to increase national energy security as well as in the other Baltic States. Open to all storage technologies directly connected to the transmission network, the aid will take form of direct grants to support the construction of at least 1,200 MWh of new electricity storage capacities. The scheme for Wallonia, instead, aims to mitigate the risk that EU laws could cause businesses in the “carbon community” to relocate to third countries with less ambitious environmental policies. Beneficiaries of the 75-85% levy reduction for eight years, depending on their exposure to the risk of relocation, will have to commit to achieving climate change mitigation targets and carrying out energy audits.

Airport dodging – Increasing environmental regulation on German aviation could damage the country’s economy, according to the head of Germany’s largest airline Lufthansa, Carsten Spohr. For example, a quota for e-fuels in aviation, would make Germany less attractive compared to other locations, especially as e-fuels are not available at scale, Spohr said. He claims that more and more airlines are avoiding German airports. Lufthansa subsidiary Eurowings recently announced it would cut its offer in Germany by about 1,000 flights per year and relocate them to other countries in Europe. Budget airline Ryanair in the past week announced it would reduce its offer in Germany due to increasing operating costs caused by regulation, such as a higher aviation tax. (Clean Energy Wire)

Nuclear reactivation – The Christian Democratic Union of Germany (CDU) and the Christian Social Union in Bavaria (CSU) are committed to nuclear energy and have said if they win the federal election, they want to reactivate the nuclear power plants that were recently taken offline. “The last nuclear power plants have been shut down, but the dismantling has not yet begun,” Sebastian Brehm, head of the CSU’s Mittelstandsunion (MU), told Handelsblatt. He had submitted the application with the MU. Framatome, a subsidiary of the French energy group Areva, confirmed that five nuclear reactors that have not yet been dismantled “can be easily reactivated and put back on the grid as quickly as possible.” At end September, the CDU and CSU in the Bundestag called for a “decommissioning moratorium” for the reactors that had recently been shut down.

Car CO2 target alert – EU car emissions target for 2025 are unattainable, Czech automaker Skoda has warned. Speaking on Czech television Sunday (Oct. 13),  Martin Jahn, Skoda Auto board member and vice-president of the Czech Industry Confederation said demand for electric vehicles has not materialised, making it increasingly likely that the industry will miss its CO2 emission goals. “Unless the policy is rethought, the next few years will be quite painful. We will have to pay fines or buy credits from other car companies – those that only make electric cars – like China,” Jahn said. (Euractiv).

Friends of renewables – A group of 11 EU countries – Austria, Cyprus, Denmark, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, and Portugal – has issued a “non-paper” calling for further EU action on renewables, French news website Contexte reports. In the paper, the group calls for “a post 2030 framework including a revision of the governance regulation covering the post-2030 (period) as well as a revision of the Renewable Energy Directive”. Other proposals include putting forward “a targeted legislative proposal for a Directive on the Acceleration of Permitting of RES and Energy Infrastructure” and “a voluntary EU Green Loan Standard” similar to the EU Green Bond Standard in order to “leverage the banking market and steer investments into renewables and energy savings, as well as support financing the renovation wave”.

ASIA PACIFIC

COP bid – The South Australian state government has announced it will bid to host the COP31 conference in 2026 if Australia is successful in securing hosting rights for the talks. The state government said in a statement Monday it had undertaken initial feasibility analysis and more in-depth studies to support preliminary planning of the event. It is envisaged the talks would be held within the Adelaide Convention Centre and wider precinct. The government estimates hosting the UN event would bring a potential benefit of A$511.6 mln ($344 mln), including economic activity generated by tourism, trade, and investment. Australia will find out if its bid is successful next month at COP29 in Baku, Azerbaijan.

Carbon storage – A joint project between Japanese and US players will be established to develop technologies for capturing and storing CO2 emissions underground, according to Nikkei. JX Nippon Oil & Gas Exploration, part of the ENEOS Group, later this month will sign a Memorandum of Understanding (MoU) with the University of Wyoming and the Japan Carbon Frontier Organization on cooperation in field trials, the Nikkei report said.

Please help – Representatives from South Korea’s petrochemicals and oil refining sectors have urged the government to provide more policy support for the two industries to pursue decarbonisation, according to news agency Yonhap. The government should promote policies that can help commercialise carbon capture, utilisation and storage (CCUS) technology, expand renewable energy, and support the development of low-carbon and high-performance materials, the representatives told an event held last week by the trade ministry and business lobby KCCI.

Methane project – Pakistan, with the assistance of the United Nations Environment Programme (UNEP), is expected to launch methane offsetting project, which will help the South Asian nation earn millions of carbon credits, the Dawn reported. The Lakhodair landfill emissions project located north of Lahore will convert methane to natural gas thereby reducing carbon emissions. A detailed feasibility study of the project will be launched soon, CEO of the Lahore Waste Management Company (LWMC), told media outlet Dawn. Meanwhile, UNEP is expected to provide consultation help in the designing of project using the latest technology. According to an internal report, around 3.2 million carbon credits can be generated from the capturing of methane between 2024-2053, Dawn reported. Pakistan is the seventh largest methane emitter globally and is also a signatory to the Global Methane Pledge.

AMERICAS

Biogas firm grows in Mexico – The Mexican biogas company Sistema.bio announced Monday that it has secured $15 million in financing from a portion of the company’s existing investors. The financing package gives the company the capital necessary to begin expanding into Asia, Africa, and Latin American markets ahead of its Series C financing round expected next year. Sistema.bio says that it has grown its sales fivefold since its Series B capital raise in 2021. The company uses its proprietary technology to turn animal waste sourced from farmers into clean biogas, which can be used for cooking, heating, and electricity generation, while also providing a biofertilizer co-product.

EPA urged to halt hydrogen, CCS rules – The White House Environmental Justice Advisory Council is asking the US EPA to leave clean hydrogen and CCS out of its upcoming rulemaking for gas-fired power plants, E&E News reported Friday. The rules in question would be based on technologies that capture smokestack emissions for permanent storage, and turbine technologies that burn natural gas and hydrogen blends in power plants. Both technologies are supported by standards the EPA proposed last year that would require plants to cut their emissions using CCS hydrogen co-firing. The advisory council is urging the EPA to instead conduct an impact analysis before re-introducing the rule.

Not under my backyard – In Illinois, the Champaign County Board initiated a one-year moratorium on carbon sequestration on Thursday as a preventative measure against the potential risk of future CCS activities. There is currently no carbon capture site underneath the county’s Mahomet Aquifer in the middle of the state, but the Board’s Environment and Land Use Committee made a unanimous decision in the wake of the CO2 leak from food processing and trading company Archer-Daniels-Midland’s carbon well in Decatur, Illinois.

VOLUNTARY

DAC delivery – UK startup Mission Zero Technologies has begun delivery of a direct air capture (DAC) plant in Canada at partner Deep Sky’s carbon removal innovation and commercialisation centre, Deep Sky Labs, in Innisfail, Alberta. Powered by solar energy, Deep Sky will use MZT’s electrochemical system to recover CO2 for permanent storage underground, with the containerised system expected to recover 250 tonnes of CO2 annually. The small-scale system is a step on the way to achieving Deep Sky’s goal to capture between 100,000 and one mln tonnes of CO₂ annually for permanent mineralisation. It comes on the heels of two other plants by MZT in the UK, which enable CO2 to be used to make sustainable aviation fuel (SAF) and carbon-negative building materials, and also follows Deep Sky’s raising of C$2.5 mln from the National Bank of Canada and BMO in September.

Mixed waste removals – Certifying carbon removals from the pyrolysis of mixed waste is now possible thanks to research by the Ithaka Institute, according to a Monday release. UK-based Standard Gas Technologies will become the first company to be awarded removals from registering the biogenic carbon of mixed-waste derived char produced by its pyrolysis-based energy-from-waste process. The development follows research done by the Ithaka Institute to develop a technique to measure the biogenic content of any refuse-derived char (RDC), which is based on continuous gas measuring and large-scale homogenization and representative sampling. As a consequence, Carbon Standards International (CSI) is now providing data-driven accounting of carbon sequestration options for RDC. Mixed waste generally contains between 50%-70% biogenic material – predominantly paper and cardboard – which can now be credibly claimed to produce carbon removals, according to the release.

CCU raise – Aerleum, a Strasbourg-based company focused on carbon capture and utilisation (CCU) has closed a €5.5 mln seed round, led by 360 Capital and HTGF, with participation from Norrsken, Bpifrance, and Marble. The funding will go towards industrialisation of its technology, which transforms atmospheric CO₂ and low-carbon hydrogen into synthetic fuels (e-fuels) and chemicals. The company claims that its solution eliminates some of the most energy-intensive steps of the value chain, enabling cost-competitive, large-scale production of e-fuels and chemicals, while drastically cutting GHG emissions. Aerleum is initially focusing on e-methanol, and is now poised to launch its first full-scale pilot unit. (eu-startups.com)

Rewetting bogs – The Social Carbon methodology SCM0010, focusing on peatland restoration, is officially live, a LinkedIn post announced. The methodology supports the rewetting of drained peatlands, helping to reduce GHG emissions while restoring critical ecosystems. The first module of which, focused on rewetting drained peatlands on temperate agricultural land, can be viewed here.

Fly ash – Kontur JSC, which administers the Russian Carbon Units Registry is seeking comments on the “Utilisation of fly ash from thermal power plants in the production of building materials” methodology. The public consultation is open until Nov. 12, 2024. The National Association for the Development of Secondary Use of Raw Materials (ARVIS) has developed the draft methodology for the project’s implementation, according to a notice on the registry’s website. Comments on the methodology can be sent online and will be made public once the methodology is published. Fly ash is a byproduct of coal combustion in power plants that can be repurposed in construction materials like concrete to reduce emissions associated with cement production.

SCIENCE & TECH

Higher, hotter – Climate change is raising winter temperatures faster than those of summer, especially in high-altitude areas, according to New Scientist. This “asymmetric” warming could spell trouble for the vast amount of carbon stored in soils there by altering microbial activity more than expected. The planet’s soils store more carbon than any ecosystem other than the oceans, and could store much more if better managed. But soil carbon is threatened by climate change. Researchers expect warmer temperatures will boost the amount of soil carbon lost to the atmosphere as greenhouse gases, largely due to changes in the behaviour of soil microbes. However, the scale of this warming feedback remains uncertain.

AND FINALLY…

Brussels is well worth a target – As the “EU capital” had its municipality elections on Sunday, it all came down to cars and climate policies. Green party Ecolo/Groen were defeated, in the aftermath of a complicated game of alliances. The tipping point came earlier this month when local lawmakers voted to delay tighter pollution limits for cars driving into the traffic-clogged Belgian capital that were originally due to take effect in January (Politico). ETS2 will soon cover the transport sector: stay tuned for a battle over European cities’ just transition.

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