Announcing Carbon Forward Middle East – more details below.
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TOP STORIES
POLL: Negative sentiment engulfs UK ETS, from carbon price outlook to EU linking prospects
UK carbon prices are expected to remain around current levels through next year, with analysts maintaining a generally bearish outlook for the market due to persistent oversupply, delayed policy reforms, and wider challenges that many think will all but ensure the ETS is not re-connected to Europe’s this decade.
UK publishes proposed regulations formalising changes to ETS announced last year
The UK government has formally proposed legislation across the country’s four parliaments that would put into effect major changes to the British carbon market that were announced last year, according to a statement from the ETS Authority.
INTERNATIONAL
1.5C climate goal slipping out of reach, UN warns ahead of COP29 summit
The goal of limiting global warming to 1.5C is slipping quickly out of reach, although it is still “technically possible” – and relatively inexpensive – for the world to roughly halve emissions within this decade, the UN Environment Programme (UNEP) warned on Thursday.
Article 6 trades could begin flowing next year if COP29 can finalise rules -panel
Stakeholders said Thursday that, if COP29 negotiations can iron out the remaining wrinkles around Article 6, carbon trading under the Paris Agreement may begin to pick up starting in 2025 or 2026.
BRIEFING: Article 6 hoped to resolve issues slowing down Indonesia’s, Vietnam’s energy transition
Funding brought about via Article 6 of the Paris Agreement is hoped to overcome the complex policy and engineering challenges faced by Indonesia and Vietnam in decarbonising their electricity grids, experts on a panel said Thursday.
G20 task force elicits commitment by major economies to mobilise against climate change
A Brazilian G20 presidency task force concluded its eight-month engagement Thursday with a political statement by members to take advanced actions in economic and financial systems to address climate change.
Oil and gas exploration expected to rise despite COP28 commitments
Oil and gas exploration licensing is set to surge despite COP28 pledge to phase out fossil fuels, according to a new report.
Azerbaijan’s climate leadership questioned over human rights, reliance on gas
The European Parliament voted a resolution on Thursday questioning the choice of hosting the United Nation’s upcoming COP29 climate summit in Azerbaijan, a country it accuses of human rights violations and whose revenues come chiefly from the extraction of natural gas.
ASIA PACIFIC
China releases work plan to improve carbon accounting
Chinese regulators have jointly released a work plan to improve the country’s carbon accounting systems, requiring the central and regional governments to report emissions data on an annual basis.
Cercabono seeks to establish carbon projects in Indonesia, amid growing optimism
Colombia-based carbon standard Cercarbono is looking to establish projects in Indonesia, its chairman told a conference Thursday, as market participants wait for more detail on the new Indonesian government’s plans for the country’s carbon markets.
Korean business lobby teams up with govt agency to promote forest carbon credits
A major trade group in South Korea has teamed up with a government agency to promote the development of forest-based carbon offsets in the country.
New Zealand updates industrial carbon allocation baselines, pushes tough calls to next year
The New Zealand government on Friday updated the baselines for free allocation of permits to industrials for the first time since 2010, but postponed final decisions on the steel and aluminium sectors until April next year.
Australia’s sovereign wealth fund must do better to push fossil fuel companies to transition
An activist shareholder group said Thursday Australia’s sovereign wealth fund has over A$1 billion ($660 million) invested in three of the nation’s most polluting companies, two oil and gas and one coal.
Investor coalition urges Japan to provide more clarity on carbon pricing
More clarity around Japan’s carbon pricing and transition finance policies is needed to boost investors’ confidence and encourage investments in climate solutions, a group of investors have said.
EMEA
BRIEFING: CO2 removals target up in the air as EU debates 2040 climate goal
Debate over the place of carbon removals in climate policy is picking up ahead of a decision on the EU’s 2040 climate target, due next year, but EU climate chief Wopke Hoekstra remains elusive on whether he will support a separate target for removals or not.
EU suggests accrediting specialised certification bodies for carbon removals
The certification bodies that will issue carbon credits under the EU’s new Carbon Removal and Carbon Farming (CRCF) regulation could be accredited for a specific type of removal, the European Commission suggested on Wednesday.
EU eyes biodiversity co-benefits from carbon farming, CO2 removals
The European Commission presented draft rules on Tuesday to measure CO2 removals from agriculture and forestry, saying future EU carbon removal credits could help mobilise finance for nature restoration.
Netherlands unlikely to hit 55% emissions reduction target by 2030, extra policy needed fast
The Netherlands is “extremely unlikely” to reach the legal climate goal of a 55% reduction in greenhouse gas emissions by 2030 under current or scheduled policy, and will need additional policy fast to bring the climate goal for 2030 back in sight, according to the country’s environmental assessment agency.
Italian waste-to-energy plant to integrate CCS technology funded by ETS revenues
An Italian waste-to-energy plant will apply carbon capture and storage to its processes, spending money collected through the EU Emissions Trading System (ETS).
Euro Markets: Short-covering extends to second day, fuelling 2.7% gain as technical levels fall
European carbon prices advanced strongly for a second session on Thursday amid renewed short-covering in high volume, as the secondary market breached key technical levels and pulled energy prices higher, while UKAs ended their recent winning run.
AMERICAS
WCI Markets: CCAs swoon with LCFS scrutiny
California Carbon Allowances (CCA) futures reversed sharply in tandem with a sell-off in Low Carbon Fuel Standard (LCFS) credits this week ahead of a board vote on proposed changes to the state’s clean fuels programme, while Washington Carbon Allowances (WCA) remained out of the spotlight.
INTERVIEW: US carbon project intermediary adds first biochar project to portfolio
A US-based voluntary carbon market intermediary has added the first biochar project to its portfolio amid growing interest in CO2 removal (CDR) credits, the firm told Carbon Pulse.
Brazil’s cap-and-trade proposal could be voted next month, Senator says
Brazilian Senator Otto Alencar (PSD-BA) said Wednesday that he and a group of lawmakers will soon present a revised proposal for a national cap-and-trade system, aiming for a vote next month.
Revised Cercarbono REDD methodology to incorporate jurisdictional, nesting needs
Colombia-based international carbon standard Cercarbono is building compatibility with ‘nesting’ and jurisdictional REDD+ (J-REDD) into its forthcoming updated REDD+ methodology.
Canadian CDR firm secures $11.4 mln in Series A funding
A Nova Scotia-based company that utilises ocean alkalinity enhancement (OAE) that aims to achieve CO2 removal (CDR) has completed a $11.35 million Series A funding round, according to a Thursday press release.
Canadian voluntary carbon firm purchases 1.2 mln Brazilian REDD+ credits
A Vancouver-based carbon credit financier announced Thursday its purchase of 1.2 million credits from a Brazilian REDD+ project, designed to conserve nearly 200,000 hectares of Amazon rainforest.
VOLUNTARY
INTERVIEW: Real-time MRV promises greater transparency amid nature-based carbon credits scrutiny
Real-time atmospheric monitoring, reporting, and verification (MRV) could help restore credibility to nature-based carbon projects, the CEO of a greenhouse gas monitoring firm told Carbon Pulse.
Electric cookstove maker receives cash injection from European Investment Bank
A cookstove manufacturer and project developer has secured $15 million from the European Investment Bank (EIB) to scale electric cooking in east Africa, avoiding 12 million tonnes of carbon emissions over a period of five years.
Verra releases first methodology for CCS, DACCS
Verra, the voluntary carbon standard-setter and verifier, has released a set of modules for carbon capture and storage (CCS) – the first in its Verified Carbon Standard (VCS) as part of methodology VM0049 – with a view to better proving direct air capture (DAC) projects with carbon storage.
Ocean-based carbon removals provider signs agreement with tech giant
A provider of ocean-based carbon removals has signed an agreement with a tech giant to provide carbon removals over the next 10 years.
Methodology rejections at ICVCM are ‘markers for change’, CEO says
The rejection of methodologies by the Integrity Council for the Voluntary Carbon Market (ICVCM) is not a sign that they are not good, but that they need improvement as part of a collective process, the body’s chief executive said on Thursday.
Carbon crediting platform updates rock weathering methodology
A carbon removal registry has issued a “minor update” to its Enhanced Rock Weathering (ERW) methodology to add more detail and clarity around monitoring, reporting, and verification (MRV) requirements, the platform announced on Thursday.
Ratings agency offers credit score for bundled portfolios of carbon credits
A ratings agency is offering a credit score for bundled portfolios of carbon offsets, as long as there are no poorly rated credits in the basket.
Swiss carbon removal firm partners with US investment bank to remove 40,000 tonnes of CO2
A Zurich-headquartered direct air capture (DAC) company has partnered with an American financial services institution to permanently remove 40,000 tonnes of CO2 from the atmosphere, the company announced on Thursday.
COP16 (FREE TO READ)
All our nature and biodiversity articles remain free to read (no subscription required). However, as of Oct. 24 we will require that all readers have a Carbon Pulse login to access this content in full. To get a login, sign up for a free trial of our news. If you’ve already had a trial, then you already have a login.
Nature tech market nears $2 bln as investments in biodiversity credits increase
Nature tech startups are projected to attract up to $2 billion in venture capital (VC) investments by the end of this year, with significant growth in early-stage involvement, particularly in the MRV and biodiversity credits category, according to data presented on Thursday at the COP16 UN biodiversity summit.
NGOs file complaint to UNEP for backing TNFD
A group of NGOs said Thursday they have filed a complaint to the UN Environmental Programme (UNEP), arguing that its backing of the Taskforce on Nature-related Financial Disclosures (TNFD) has undermined environmental stewards and rights holders.
LATAM development bank invests in conservation via blockchain, biodiversity credits
CAF, the Development Bank of Latin America and the Caribbean, will collaborate on a blockchain-based conservation instrument and support marine biodiversity credits in the region, it announced at COP16 on Thursday.
More than half of organisations in survey say ready to enter biodiversity credit market
A UN-backed organisation has conducted a survey on the demand for biodiversity credits, with over half of participants claiming to be highly confident in their ability to participate in the fledgling market.
Brazil’s mangrove carbon stock would be worth $8.7 bln as tradeable credits -study
If the entirety of Brazil’s blue carbon stock from mangroves were converted into tradeable tonnes of carbon, its value would total billions, as per an NGO study launched Thursday at COP16 in Cali, Colombia.
BIODIVERSITY (FREE TO READ)
All our nature and biodiversity articles remain free to read (no subscription required). However, as of Oct. 24 we will require that all readers have a Carbon Pulse login to access this content in full. To get a login, sign up for a free trial of our news. If you’ve already had a trial, then you already have a login.
World Bank channelling billions to industrial livestock farming -report
Development banks are funnelling billions of dollars annually into the expansion of factory farming linked to animals, capital that should instead go towards regenerative practices, according to analysis by a non-profit.
Policy group sets out next steps for ‘compelling’ biodiversity credit markets
A US-headquartered group of conservation policy experts has laid out the next steps for the biodiversity credit market, to fulfil what it sees as significant potential, by preventing it from mirroring voluntary carbon markets.
Biodiversity Pulse: Thursday October 24, 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
*NEW* Carbon Forward Middle East – Jan. 16-17, Abu Dhabi – Announcing Carbon Forward Middle East in Abu Dhabi, a great new event to explore carbon markets in the MENA region. We’ll be releasing more details about this conference soon. For now, put Jan. 16-17 in your calendar and email info@carbon-forward.com to express interest in attending, speaking, or sponsoring.
Supercritical Webinar – Defining Biochar Quality – Nov. 5, 0900 EST (1400 GMT) – Essential insights for an impact-driven carbon removal strategy. Join Supercritical and panelists 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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BITE-SIZED UPDATES FROM AROUND THE WORLD
EMEA
CBAM goes downstream – The European Commission will report by the end of the year on expanding the EU’s Carbon Border Adjustment Mechanism (CBAM) to downstream products, EU official Vicente Hurtado Roa told a webinar late on Wednesday. These include components for wind turbines, which contain steel and aluminium that are both covered by CBAM, Montel News reports. The Commission is currently analysing the types of products that could be impacted in such a way, while seeking to avoid measures that would be “cumbersome, complex, difficult to apply, (or) easy to circumvent,”Hurtado Roa said. Earlier this month, the Commission launched an online survey as part of a wider study to explore the possibility of extending CBAM to downstream products.
CCS coalition – A group of 51 leading industries and civil society organisations have signed a joint letter calling on the new European Commission to urgently scale up carbon capture utilisation and storage (CCUS) to meet Europe’s climate objectives. “To achieve the EU’s ambition to capture 450 million tonnes of CO2 by 2050, hundreds of carbon capture plants must be built over the next decade,” says the letter, signed by industry leaders and two green campaign groups – the Bellona foundation and the Clean Air Task Force (CATF). The signatories urge the Commission to develop an EU action plan containing five elements: 1) A regulatory framework for CO2 transport, 2) A market for low-carbon industrial products, 3) Sufficient access to CO2 transport and storage infrastructure, 4) The creation of an EU CCS Alliance bringing together industry players, and 5) Financial support, including grants, subsidies, and tax incentives.
Kenyan-Swiss talks – Kenya’s Environment Cabinet Secretary Aden Duale welcomed Swiss Ambassador to Kenya Mirko Giulietti to his office on Thursday, where they renewed talks about a potential partnership under Article 6.2 of the Paris Agreement, the news site Kenyans.co.ke reported. The countries signed an intent of bilateral cooperation under Article 6 just over a year ago, agreeing to potentially open Kenya’s emerging carbon markets to the Swiss private sector. A final agreement would establish a framework for the trade of Internationally Transferred Mitigation Outcomes (ITMOs) to be counted towards national Paris pledges.
Net-zero cement – Swiss building materials major Holcim is among the winners of EU Innovation Fund grants, for a large-scale carbon capture, utilisation, and storage (CCUS) project in Martres-Tolosane, France, where it has a cement plant, the company announced on Thursday. Holcim’s CarboClearTech project will be its seventh large-scale CCUS supported by the EU. The company is on course to making net-zero cement and concrete a reality at scale within the 2020s, said CEO Miljan Gutovic. The EU Innovation Fund, funded by ETS revenue, this year provided a total of €4.8 bln to 85 large-scale clean tech projects, including three in Holcim’s sector.
Energy island costs rocket – The Princess Elisabeth Island, a pioneering artificial island under construction off the Belgian coast may cost €7 bln rather than the estimated €2.2 bln, Belgian media reported on Thursday. The island has been commissioned by transmission system operator Elia for use as an electricity hub at sea. It’s meant to be the connecting point for three offshore wind parks to be built by 2030 and new subsea interconnectors to the UK and other North Sea countries. Febeliec, which represents industrial electricity and gas consumers in Belgium, has asked Elia and energy minister Tinne Van der Straeten to put the project on hold. “If not… the electrification of the economy is at risk [due to excessive cost],” said an energy expert at Febeliec, reported newspaper De Morgen.
ASIA PACIFIC
Wind investment – Taiwan’s Cathay Financial Holding has said it will invest up to about $900 mln in a wind farm development project located off Changhua County, the largest investment in the local insurance sector in terms of offshore wind development, according to Focus Taiwan. Its subsidiary Cathay Wind Power, Denmark-based Orsted and lending banks will sign a purchasing agreement to meet the financial requirements of the transaction before closing the deal. Meanwhile, Fubon Financial Holding, another major financial group from Taiwan, has also announced its plans to set up a subsidiary focused on renewable energy investments.
The first ever – Indian carbon offset developer Varaha has issued durable carbon dioxide removal (CDR) credits from industrial biochar under Puro.Earth, making it the first-ever issuance of industrial biochar credits in the country, the developer said in a release. The project, located in Telangana, produces biochar using agricultural waste as feedstock. The company has already enrolled over 900,000 acres of farmland across India, Bangladesh, Nepal, and Kenya for its offset projects and has raised nearly $13 million in equity financing till date, it added.
AMERICAS
As long as it’s fuel – Brazilian national oil company Petrobras will expand its focus on clean energy, Folha de Sao Paulo reported Tuesday. Mauricio Tolmasquim, Petrobras’ director of energy transition, said that while the firm will continue to be an oil and gas company, it looks to put other products in its portfolio, such as green hydrogen, biofuel, and synthetic fuels. Petrobras will disclose its investment plan for the next five years at the end of November.
Some oil to go with your carbon market? – Leaders of Guyana and Singapore agreed to strengthen partnerships in carbon markets and low-carbon development at the Commonwealth Heads of Government Meeting in Samoa, the Guyanese Office of the President said on Thursday. The two countries are already collaborating in the oil and gas sector with interest in further expansion to other sectors, the office said, but on the agenda for President Irfaan Ali of Guyana and Prime Minister Lawrence Wong of Singapore were methods of advancing international frameworks for carbon trading and a shared commitment to preserve biodiversity.
Watch out – The US DOE announced the closing of a $162.4 mln loan guarantee to methane monitoring firm LongPath Technologies on Thursday. LongPath, based in Denver, will utilise the funding to construct and install more than 1,000 remote monitoring towers to track methane emissions in real-time. The network will include sites in every major US oil and gas production region. The firm received a conditional loan in January of this year from the DOE of up to $189 mln.
SCIENCE & TECH
Ethical geoengineering – The industry organisation American Geophysical Union (AGU) published on Thursday an ethical framework to guide new research, funding decisions, and policy proposals in the climate intervention field. Developed over two years, the framework contains basic principles to guide responsible geoengineering research that centers climate justice, such as transparency and public participation. The document is a “foundation for effective collaboration and partnership”, Carlos Nobre, a Brazilian researcher and a member of the Ethical Framework Advisory Board, said in a statement.
AND FINALLY…
Gold stars – An FT op-ed compares the rewarding of children’s good behaviour with gold stars to how sustainable investment seeks to reward environmentally responsible companies. However, recent trends suggest that investors have pulled back from Paris-aligned benchmark (PAB) funds, which aim to reduce global warming by investing in low-carbon companies. In 2024, these funds experienced net outflows, after years of growth, partly due to strict sustainability criteria that are difficult for companies to meet consistently. Investors are shifting towards Carbon Transition Benchmark (CTB) funds, which have looser rules and still attract interest. While some argue this shift reflects a more nuanced understanding of sustainable business practices, others see it as a way for investors to appear environmentally conscious without straying too far from mainstream indexes. Despite their challenges, PAB and CTB funds are expected to remain relevant, especially with increasing regulations against greenwashing. The column concludes by suggesting that companies, much like children, will still seek rewards — only in this case, those rewards involve financial incentives.
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