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TOP STORY
COP29 PREVIEW: Political uncertainty clouds Article 6 outlook, with key carbon trade technicalities, crediting standards on the line
Despite prior optimism for progress in Baku on UN carbon markets, political uncertainty following this week’s US election result has dampened enthusiasm for a strong outcome on Article 6 at COP29, with multiple key technical elements of international carbon trade still to be clarified, as well as the thorny question of whether crediting standards brought into force ahead of the summit will be formally endorsed.
VOLUNTARY
ICVCM still assessing cookstove carbon methodologies for CCP status, REDD+ announcement imminent
Discussions around clean cooking methodologies are still ongoing at the Integrity Council for the Voluntary Carbon Market (ICVCM), Carbon Pulse has learned, likely pushing to next month the decision that will determine which credits in the sector will be eligible for the Core Carbon Principles (CCPs) high-integrity badge.
VCM MONTHLY DATA: Highest October issuance, retirement levels for three years puts market on track for record year
Last month saw the highest October figures for voluntary carbon credit retirements and issuances for three years, data analysed by Carbon Pulse shows.
KEY TAKEAWAYS: Carbon Direct’s 2024 State of the Voluntary Carbon Market report
Demand for carbon removal credits is on pace to increase by 50% this year, while retirements of durable CDR units is set to more than double, according to a new report.
INTERVIEW: DAC credits can fall to $100/t, if projects offer something more, developer says
The cost of direct air capture credits can drop to $100 per tonne in the near term, by equipping the technology to do more than just remove carbon from the atmosphere, the chief development officer of a decarbonisation solutions provider has told Carbon Pulse.
Nature-based solutions often overlook climate-biodiversity nexus, study says
Nature-based solutions (NbS) projects must better consider the impacts of climate change on biodiversity, as temperature shifts in the long term are set to increasingly affect species conservation efforts worldwide, according to a recent paper.
Boardrooms increasingly fret about reaching net zero despite political backlash, finds survey
Momentum for net zero is building in the boardroom and leaders are refusing to abandon their plans, finds a survey of US and UK executives, despite a growing political backlash against the cost and pace of the green revolution that is expected to only intensify after the election of Donald Trump to the White House.
Nature mapping company launches project insights platform for greater transparency
A provider of audit-grade nature mapping insights has launched an online project insights platform to offer tracking of project performance and greater transparency into impact claims.
Verra certifies first ARR carbon project in Europe
A pan-European afforestation carbon project has become the first of its kind to be registered by Verra, it was announced Thursday.
EMEA
EU climate chief Wopke Hoekstra sails through Parliament confirmation hearing
Wopke Hoestra will remain the EU’s climate chief for the next five years, after committing to push for a 90% emissions reduction target for 2040 while emphasising the need to reconcile climate action and industrial competitiveness, in his confirmation hearing with the European Parliament on Thursday.
Five EU countries accused of breaking European climate law
Five European countries may be breaching EU law when it comes to their climate and energy obligations, according to a series of legal complaints filed on Thursday that call on the European Commission to take action.
Major brands urge EU to stick to deforestation law’s original start date
Over 50 companies have called on the European Parliament not to weaken the EU Deforestation Regulation (EUDR) through amendments, warning that the recently proposed delay could leave the law vulnerable to changes that would undermine its impact on deforestation.
FEATURE: Traders, asset managers start to take action on EU ETS2 commercial risks
Traders and asset managers appreciate the commercial risks attached to the EU’s new emissions trading scheme for road transport and heating fuels (ETS2) and are increasingly taking measures to mitigate its future impact, say industry sources.
Euro Markets: EUAs advance most in two weeks as power short covering sparks late surge
EU carbon prices firmed robustly on Thursday, rising by the most in two weeks as energy markets fluctuated before ending the day with a steep climb on a sudden burst of short covering in power that triggered additional buying in carbon and natural gas.
Bring waste sectors into UK ETS but don’t raise emissions cap, Climate Change Committee urges govt
The UK Climate Change Committee (CCC) has advised the government not to increase the emissions cap in the nation’s carbon market as it prepares to expand the scheme to include waste incineration and energy-from-waste (EfW) sectors in 2028.
AMERICAS
‘Trajectory of economics’ will keep climate action moving despite Trump election, former US officials say
While the second Trump presidency will likely hamper the US’ reputation for climate action on the global stage, top former governmental officials said Thursday that the incoming administration’s ability to stall the US – and the world’s – momentum towards a clean energy economy will be limited.
Climate companies might not find solace in Canada following US elections, experts say
Canadian cleantech tax credits and a favourable regulatory environment could lure US entrepreneurs to move north, but cohesive climate policy is under attack from Conservative opposition in the country, panellists said Thursday.
Canadian emissions reductions too slow, overly optimistic, and a far cry from 2030 targets, auditor general says
Just six years remain to reach Canada’s target of 40-45% emissions reductions below 2005 levels, but efforts led by the federal government to reduce emissions face considerable implementation challenges, a report from the Office of the Auditor General (OAG) said Thursday.
Canadian oil sands emissions flatten in 2023 despite production bump -report
Absolute greenhouse gas emissions in Canadian oil sands grew less than 1% for the third year in a row, according to analysis published on Thursday.
WCI Markets: WCAs cool off post repeal defeat, CCAs gain amidst ARB update wait
Washington Carbon Allowance (WCA) prices cooled off after spiking following the defeat of a referendum to repeal the programme, while California Carbon Allowance (CCA) values rose amidst anticipation of greater regulatory clarity from ARB.
Amazon deforestation falls by over 30%, records largest drop in 15 years
Deforestation in Brazil’s Amazon fell by more than 30% between Aug. 2023 and July 2024, marking the most significant percentage drop in 15 years, according to government data.
Brazilian development bank to pour nearly $90 mln into new ethanol plant
The Brazilian National Bank for Economic and Social Development (BNDES) has approved R$500 million ($88 mln) in financing for a new biofuels-producing ethanol plant, which it said will support Brazil’s goals to decarbonise the transport sector.
ASIA PACIFIC
ANALYSIS: London Protocol amendment ratification takes effect in Australia, allowing for transboundary CCS
Australia’s ratification of a key amendment to the London Protocol went into effect Thursday allowing the shipping transport of CO2 between nations, meaning its plans to become a regional hub for an emerging carbon capture and storage (CCS) industry is one step closer, but more is needed to provide the kind of policy certainty that secures investment and carbon markets are seen unlikely to play a material role in financially de-risking projects.
PNG relents on COP29 delegation but will still “liquidate” own forests without finance, PM warns
Papua New Guinea will send a delegation to COP29 in Azerbaijan this month after first its prime minister and then its foreign minister had said it would not as a protest against the lack of climate finance for maintaining its vast carbon sink forests.
China’s Hubei to promote inclusive offset programme, forest carbon sinks
China’s Hubei province has announced plans to push forward a local carbon offset programme and encourage the development of forest carbon projects within the region.
Australian bank cuts fossil funding, but accused of leaving “giant” loophole
The third Climate Report released Thursday by one of Australia’s top four banks showed it has cut more money for fossil fuels developers, but an activist shareholder group said it still has loopholes.
AU Market: ACCU volumes surge as options drive derivatives market
Volumes in Australia’s compliance credit market are on track to beat last year’s by more than a third, and in October recorded its third-highest amount of trade of any month at 3.6 million Australian Carbon Credit Units (ACCUs), according to a report released Thursday.
New Zealand can make deep carbon cuts at home for next NDC, but needs early start, commission finds
New Zealand can achieve substantial emissions cuts domestically for its 2031-35 Nationally Determined Contribution (NDC), reducing its reliance on international credits, but must start work already this decade, according to the independent Climate Change Commission (CCC).
INTERNATIONAL
G20 must strengthen Paris pledges, cut fossil fuels, in order to keep 1.5C alive -UN adviser
The next round of climate pledges from the world’s highest-emitting economies will ultimately determine the chances of limiting global warming to 1.5C, depending in particular on how far they go in pushing a transition away from fossil fuels, the UN’s special adviser on climate action said on Thursday.
COP29 climate finance goal must include massive boost for adaptation, says UN report
The new global finance goal that is due to be agreed at COP29 this month must include a massive boost for adaptation, according to a flagship UN report published on Thursday.
Carbon market standard setter recommends crediting bodies connect with CAD Trust
A global standard-setting organisation for carbon markets in a statement Thursday recommended that crediting programmes connect to the World Bank-backed Climate Action Data Trust (CAD Trust).
AVIATION
Emissions from private jets climb nearly 50% during 2019-23, study finds
Private jets are contributing an increasingly significant share to global carbon emissions, with emissions rising nearly 50% over the last four years, according to a new study.
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.
Biodiversity Pulse: Thursday November 7, 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).
ANNOUNCEMENT
Carbon Pulse and LSEG partner up on carbon markets
LSEG customers can now access news and intelligence on carbon markets, greenhouse gas pricing, and climate policy via their Workspace platform, thanks to a new partnership with specialist provider Carbon Pulse.
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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.
ClearBlue Markets + Invert – Webinar: Decoding British Columbia’s New Output-Based Pricing System (OBPS) – Nov. 20, 1300 EST: British Columbia’s OBPS marks a significant shift in carbon pricing, designed to reduce emissions while maintaining industrial competitiveness. Taking recent election results into consideration, this webinar will equip you with the knowledge to stay compliant, reduce costs, and capitalize on new opportunities. Join industry experts for crucial insights into regulatory changes and their impact on industries. Learn more and register here
European Industrial Carbon Management Summit – Dec. 5, Brussels: The Zero Emissions Platform flagship event will bring together industry leaders, policymakers, civil society and scientific experts to discuss the future of industrial carbon management across Europe. Get ready for insightful keynotes, case studies from pioneering projects, and panel discussions on the deployment of industrial carbon management technologies. The Summit is the perfect space to connect with peers working at the forefront of industrial decarbonisation. Registrations are now open – do not miss your chance to be part of the conversation.
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SURVEY
CDR.fyi has launched the first-ever durable Carbon Dioxide Removal (CDR) Pricing Survey to gather insights on pricing perceptions within the CDR industry. The survey, open from Oct. 28 to Nov. 22, targets both purchasers and suppliers of durable CDR with separate versions for each. It covers 15 CDR methods, including biochar carbon removal, DAC, and mineralisation, and is aimed at gauging optimal pricing and acceptable price ranges for various methods. The survey aims to determine the prices purchasers are willing to pay, the pricing suppliers need to expand operations, and demand signals across methods for 2025 and 2030. Responses will remain confidential, with data reported in aggregate and accessed only by non-conflicted team members. Results will be published post-survey, with a full report available to survey respondents and CDR.fyi premium users. The initiative seeks to provide essential pricing benchmarks to support carbon removal market growth.
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Premium job listings
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BITE-SIZED UPDATES FROM AROUND THE WORLD
SCIENCE & TECH
The cruellest time – It’s the year we are living right now, according to the EU Copernicus. Given that 2023 was globally 1.48C above the pre-industrial level, it is likewise virtually certain that the annual temperature for 2024 will be more than 1.5C above the pre-industrial level, and likely that it will be more than 1.55C above the pre-industrial level. October 2024 was the second-warmest October globally, after October 2023, was 1.65C above the pre-industrial level and was the 15th month in a 16-month period for which the global-average surface air temperature exceeded 1.5C above pre-industrial levels.
EMEA
Winds of change – Plans for England’s largest onshore wind farm at 100 MW are underway, which could be built in a site to the north of Manchester and could generate enough electricity for 100,000 homes before the end of the decade. Cubico, the project developer said it plans to invest £200 mln to get the 21-turbine wind farm up and running by 2030. The wind farm would be England’s first major onshore wind development in years after a de facto ban was reversed by Labour earlier this year. The scheme will go out to the public for consultation this month before eventually being put in front of local planning authorities. It would be the fifth-largest onshore wind farm in the UK, with the other four being in Scotland. Cubico is backed by the Ontario Teachers’ Pension Plan and Canada’s PSP Investments. (London Standard)
EU Ecodesign forum open – The European Commission announced on Thursday it opening a call for membership applications for a new stakeholder forum under the new Ecodesign for Sustainable Products Regulation (ESPR). The ESPR entered into force on July 18 and obliges companies selling goods on the EU market to make a lifecycle assessment of their environmental footprint – covering areas like CO2 emissions, water consumption, and harmful chemical substances. “The new Ecodesign Forum will gather representatives from industry, civil society and academia, together with experts appointed by Member States,” the Commission announced. Organisations and individuals meeting the selection criteria will have until Dec. 5, 2024, 12:00 CET (noon) to submit their applications.
Better than expected – ArcelorMittal reported third-quarter core profit above market expectations on Thursday, as improvement in its Brazil business partly offset continued weakness in North America and Europe. The world’s second-largest steelmaker said its EBITDA rose to $1.58 bln in the quarter, down 15% from a year earlier but ahead of analysts’ consensus of $1.49 bln. The steel industry has been battered by tightening global monetary policy, weaker construction activity in Europe, and problems in the real estate sector in China. ArcelorMittal has expressed concern about increased imports into Europe and has called for stronger trade measures to address the matter. Steel prices in Europe were “well below the marginal cost curve”, due to overproduction in China and aggressive exports from that market, it said. While in the US, the risk of market protectionism could impact steelmakers exporting there. (Reuters)
Tanzania’s carbon – Tanzania has registered over 63 carbon trading projects across various sectors, allowing the nation to reduce its carbon footprint and generate revenue from environmental services. The projects registered are across the sectors of agriculture (8%), energy (33%), forestry (51%), livestock (5%) and waste management (3%), said Deputy Minister of State in the Vice President’s Office (Union and Environment), Khamis Hamza Khamis at the National Assembly on Wednesday. The government has been offering public education on carbon markets to encourage conservation and curb deforestation, and is also implementing the National Clean Cooking Strategy (2024-2034), which promotes the use of clean cooking fuels such as natural gas, renewable energy, alternative charcoal, and electricity, he said. Tanzania is also implementing a National Blue Economy Policy 2024 to promote the use of blue bonds and carbon trading in the marine economy, he added.
Mozambique mangroves – UAE-based mangrove restoration developer Blue Forest has broken ground on phase one of its mangrove reforestation project in Mozambique, which seeks to restore 5,000 ha of degraded coastline, it said in a release Thursday. Over the next 36 months, some 40 million mangrove trees will be planted. The wider MozBlue restoration and conservation project which spans 155,000 ha will involve training 300 local communities to plant 200 million mangrove trees by 2030, aiming to remove 20.4 mln tonnes of CO2 over the project’s 60-year lifespan. The project also seeks to support alternative livelihoods to deforestation and to grant formal land tenure to local communities. Mangroves are estimated to remove more CO2 than any other tree species and also help protect coastlines against climate disasters, while offering habitat for fish.
ASIA PACIFIC
LNG partnership – Singapore’s Energy Market Authority (EMA) has signed a preliminary agreement with PetroChina to strengthen the Southeast Asian nation’s expertise and knowledge on liquefied natural gas (LNG) supply and management, according to Reuters. The power industry regulator said both entities would explore opportunities to strengthen each other’s LNG supply chains, exchange knowledge on the market, and evaluate joint procurement opportunities.
Blue carbon survey – Japan’s environment ministry has selected three priority sites to conduct a survey on blue carbon, according to a statement released Thursday. The selected regions include Aomori’s Kazamaura Village, Shizuoka’s Atami City, and Fukuoka’s Munakata City. The ministry said it will work with local governments and stakeholders in the fishery sector to conduct trial cultivation of seaweed and collect relevant data.
AMERICAS
Peru J-REDD publication – The secretariat of the ART carbon credits standard announced Thursday that it has published the second concept for Peru under its TREES jurisdictional certification programme. This TREES Concept for the Indigenous J-REDD programme was submitted by the Peruvian government in partnership with the Indigenous organizations AIDESEP, CONAP and ANECAP. The publishing of the TREES Concept is the first step to register a J-REDD program under ART, and once TREES Registration documents have been submitted and the results independently verified by an accredited verification body, the ART Board may approve the issuance of serialised TREES credits to the participating jurisdiction. The total number of jurisdictions registered with ART is now twenty-three, the most recent before this being Brazil’s Para. ART previously approved a TREES listing for Peru’s J-REDD programme in Dec. 2021.
Republicans sour on permitting reform package – Donald Trump’s election Tuesday dampened the prospects for permitting legislation that was previously agreed upon by congressional Democrats and Republicans. The compromise package, which sought to speed up permitting times for energy and mineral projects, was originally crafted and presented by Senators Joe Manchin (I-WV) and John Barrasso (R-WY) in July. However, E&E News reported Thursday that Republicans had lost their appetite for the bill following Trump’s electoral victory. “I don’t really see a path forward,” one Republican aide said. Sen. Manchin also lost his senate seat Tuesday to Republican Jim Justice.
New problems for old forests – The Biden administration’s plans to conserve old-growth forests could be a quick target for elimination after Donald Trump becomes president — if they ever go into effect. The Agriculture Department is sitting on a draft environmental impact statement for its moves to wrap old-growth protection into the management plans for national forests across the country. Officials could sign off on a final plan at any time, and USDA has estimated it would do so in January. But Trump’s victory and the potential for Republican majorities in both chambers of Congress has changed the calculation. Officials now face a question about whether to make the proposal final at all, knowing it’s likely to be abandoned by the incoming administration or undone by Congress. (E&E News)
Final preparations – California regulator ARB on Wednesday released the final Environmental Impact Analysis (EIA) for the revised Low Carbon Fuel Standard (LCFS) proposal ahead of the vote on Nov. 8. The agency did not identify any new or significant environmental impacts, or any alternative or mitigation measures considerably different from those considered in the draft EIA, ARB said. The regulator on Thursday subsequently released a resolution signalling support for the revisions, which certified that the final EIA was completed in compliance with ARB’s in alignment with the requirements of California Environmental Quality Act.
LCFS opposed – ARB member Dean Florez will vote no on the proposed LCFS amendments. Florez said the revisions “expose economic, transparency and policy gaps” that undermine the regulator’s climate policies. He denounced the agency for downplaying the potential cost of the programme on retail gasoline prices, as well as for its “refusal to conduct a comprehensive assessment of emissions”. The agency’s crediting system for emissions reductions from dairy and livestock operations also lacked sufficient oversight, he added. Florez’s comments echoed concerns raised by cliamte groups as well as ARB’s Environmental Justice Advisory Committee (EJAC), which has demanded that ARB members reject the proposal for failing to adequately consider the committee’s recommendations. (CalMatters)
Good news – Colorado is closer to meeting its 2025 and 2030 greenhouse gas emissions reduction targets than previously expected, the state department of environment and public health announced Thursday. Colorado’s statewide emissions decreased 11.4% from nearly 153,100 MtCO2e in 2005 to 135,600 MtCO2e in 2020, almost halfway towards the 2025 statewide target. From 2005 to 2020, emissions declined 14.% in energy and 41.3% in waste. However, emissions increased 12.3% in agriculture; 66.4$ in industrial processes and product uses; and 33.9% in land use, land-use change, and forestry.
VOLUNTARY
Making plans – Pollination, together with the Institution of International Finance (IIF), has published a report detailing how transition plans are becoming a key facilitator for flows of capital to net zero-aligned and aligning companies, assets, jurisdictions, and activities, with financial institutions’ expectations for their quality and scope evolving. Based on a survey of IIF global membership, structured interviews, and a review of transition plan-related materials, the report finds that transition planning and disclosure are accelerating, with a significant increase in entities disclosing climate transition plans. The report highlights that credible transition planning can enhance a firm’s ability to create value for shareholders and stakeholders. For example, by shoring up revenue and profit based on consumer or client preferences, reducing a range of risks and, ultimately, lowering the costs of capital through alignment with climate goals.
Making waves – Golden Union Shipping Company, a Greek dry bulk shipping company, has been issued with the first ever credits relying on the Gold Standard’s Retrofit Energy Efficiency Measures in Shipping methodology. These transportation-based 2020 vintage credits were issued for a project that reduced emissions involving 17 retrofitted bulk carrier ships and the first monitoring period spanned three calendar years, 2020-22. The ships are traveling in international waters, and there is no “host country” and no Nationally Determined Contribution (NDC) related to this project.
INTERNATIONAL
Stop the waste – Ahead of COP29, the Global Alliance for Incinerator Alternatives (GAIA) is urging delegates to prioritise climate finance for reducing waste methane emissions, advocating for solutions rooted in environmental justice that ensure inclusivity. GAIA highlights that waste methane emissions could be reduced by up to 95% by 2030 through cost-effective, scalable measures like waste prevention and organic waste treatment. To support this, GAIA has released the NDC Checklist, a guidance document aimed at helping countries incorporate waste and methane reduction into their NDCs in alignment with environmental justice. The checklist promotes community-led solutions, including the integration of waste pickers and a commitment to systemic change beyond simple emissions reductions.
AND FINALLY…
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