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TOP STORY
WCI offset usage slips to just under 4% in 2021-23, compliance data shows
Emitters in California’s carbon market more than halved their use of offsets during the 2021-23 compliance period, driving overall utilisation under the scheme to below 4% despite an uptick in WCI partner Quebec, government data published Friday showed.
VOLUNTARY
BRIEFING: Confidence in VCM increases, but challenges remain in attracting buyers
Participants in the voluntary carbon market (VCM) are increasingly confident that integrity issues plaguing the sector are being solved, but challenges remain around attracting buyers, speakers said at an industry conference this week.
Bullish momentum building in voluntary carbon market for 2025 -analysts
Next year could be a turning point for the beleaguered voluntary carbon market because the underlying fundamentals have stayed robust, particularly the rising number of companies setting SBTi climate targets, despite a tough year, according to analysts in a new report.
Gold Standard to charge $0.25 per credit issued, $0.20 for least developed countries
Gold Standard has updated its fee structure for registry accounts and certification processes, with two different pricing options for issuing credits, the standard body announced.
INTERVIEW: Research group says “CDR optimisation” needs clear distinction between removed, avoided CO2
So-called “CDR optimisation” projects that build on pre-existing practices need to improve accounting techniques to distinguish between removed and avoided emissions in order to ensure integrity in the crediting process, representatives from a California-based research group told Carbon Pulse.
AVIATION
KEY TAKEAWAYS: ICAO TAB assessments, recommendations, and public comments for CORSIA 2024 application cycle
UN civil aviation body ICAO late on Friday published reports outlining its Technical Advisory Body’s (TAB) assessments, recommendations, and public comments made during the 2024 cycle for applications by carbon credit standards seeking eligibility under the airline offsetting programme.
SAF production from microbial oil offers higher land-use efficiency, limited by high production costs -study
Oil derived from sugarcane is a promising alternative feedstock in the production of sustainable aviation fuel (SAF) given its land-use efficiency, but the process faces high production costs, researchers published in a recent study.
AMERICAS
RGGI Q4 auction clears more than $2 below secondary market, mild spec involvement
The last RGGI cap-and-trade auction of 2024 cleared at a $2.35 discount to RGGI Allowances (RGAs) in the secondary market the day before the sale, and at the low end of market expectations for a discounted settlement, with limited participation from financial entities, according to results published Friday.
BRIEFING: EPA defends power plant emissions rules before DC circuit
The US EPA’s power plant emissions rules were tested Friday before a three-judge panel as attorneys representing Republican states argued that the rules didn’t properly consider the costs of carbon capture and storage (CCS) technology and that the EPA overstepped in its rulemaking authority.
CFTC: Producers boost holdings across North American carbon markets, investors hone in on V25s
Emitters built their net holdings throughout the North American carbon markets, while financial players continued to shuffle their positions in California Carbon Allowances (CCAs) and RGGI Allowances (RGAs) in favour of V25s, data released Friday from the US Commodity Futures Trading Commission (CFTC) showed.
Saskatchewan inks federal carbon tax exemption into law
The Saskatchewan legislature unanimously passed legislation that will keep federal carbon pricing off of provincial home heating bills on Thursday following a year of political tussling with Ottawa over payment of the levy on fuel.
Brazilian development bank calls for forest restoration proposals in Amazon, Atlantic Forest
Brazil’s National Bank for Economic and Social Development (BNDES) this week solicited proposals under initiatives collectively worth R$109 million ($18 mln) that would support forest restoration in the Amazon and Atlantic Forest.
ASIA PACIFIC
Australia commits A$165 mln to APAC energy transition investments
Australia has committed to spend A$165 million ($106 mln) through various initiatives towards domestic and regional decarbonisation technology initiatives, including critical minerals, hydrogen, and renewable energy.
NZ Market: NZU secondary price retreats as emitters well-supplied
The price of NZUs has slid back noticeably since last week’s auction, as market observers note the healthy volumes traded in the lead up to the sale means the market is well-stocked.
CN Markets: CEA price falls to two-month low, growth momentum may come later
Prices in China’s national emissions market hit a two-month low over the past week, though some expect it to recover later this month ahead of the Dec. 31 compliance deadline.
Japan begins work to align JCM registry with Article 6
Japan has opened a public consultation on rules aimed at providing clarity on the registration of international emissions reductions under the Joint Credit Mechanism (JCM) in line with Article 6 of the Paris Agreement.
Tokyo exchange to launch new trading categories for agricultural carbon credits
The Tokyo Stock Exchange will introduce two new trading categories for agricultural carbon credits under Japan’s J-Credit scheme, as it seeks to enhance market liquidity and efficiency amid increasing project registrations and certification volumes.
Shell signs SAF offtake agreement with ADB-funded project in Pakistan
British oil major Shell has signed a contract with Pakistan-based sustainable aviation fuel (SAF) producer for long-term offtake of SAF, once the proposed plant funded by the Asian Development Bank (ADB) gets completed.
EMEA
EU-Mercosur deal pushed forward as “necessity” despite environment concerns
The European Union and the Mercosur group of South American countries concluded a long-awaited trade deal on Friday, calling it a “political necessity” and “historic milestone” despite environmental concerns and opposition from seven EU countries, including France.
Europe risks missing 2030 climate goals without urgent policy action, analysts warn
Europe may have made significant progress in decarbonising its energy sector, but investment efforts must more than double to an average of $1 trillion annually by 2030.
France’s CCS rollout plan stopped in its tracks after government falls
Plans to develop carbon capture and storage (CCS) in France have made headway over the past months and will resume as soon as the political situation stabilises and the 2025 budget is voted, an official told EU policymakers on Thursday.
Swiss NDC target ‘insufficient’, lacks transparency on carbon offsets -report
Switzerland’s Nationally Determined Contribution (NDC) and overall climate targets, policies and finance have been rated as “insufficient” in a new analysis released on Thursday.
Wind-assisted vessels, LNG can lower green fuel costs for shipowners, insurer says
Shipowners can cut compliance costs under the EU’s new green shipping fuel regulation by using LNG-powered ships or wind-assisted propulsion, according to a new report by a global shipping insurer.
Euro Markets: EUAs rebound in late rally as market awaits options expiry
European carbon prices struggled for direction for much of Friday, with participants said to be anticipating options expiry next week, before a late rally saw the benchmark reclaim nearly all of the value it had lost this week during a string of gas-driven bearish sessions.
Switzerland’s Alpiq hires veteran European emissions trader
Switzerland’s Alpiq has hired a veteran trader for its European emissions desk.
INTERNATIONAL
G20 nations’ fossil production could blow global carbon budget, study says
The world may not keep warming to less than 2C over pre-industrial levels based on the petroleum reserves of members of the G20, a report cautioned Friday.
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EVENTS
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.
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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Premium job listings
- Manager, Market Strategy & Engagement, Native – Remote (US)
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BITE-SIZED UPDATES FROM AROUND THE WORLD
EMEA
We have concerns – At a European Council of Ministers meeting last week, the Transport, Telecommunications and Energy delegations from nine Mediterranean countries, including Italy, highlighted concerns about the extension of the EU ETS to maritime transport. They warned it could harm European ports’ competitiveness and maritime transport efficiency. Stefano Messina, President of Assarmatori, welcomed the Italian Government’s position, reiterating the risks the scheme poses to fragile maritime sectors, such as container transshipment. He criticised the European Commission’s current measures to mitigate these risks, describing their methodology as inadequate. Messina called for alignment between the EU ETS and future global emissions reduction measures under discussion at the IMO. He noted a divide between Mediterranean countries, who are pressing for urgent action, and Nordic nations that support the Commission’s approach. Messina praised the Italian government’s efforts and urged continued work to protect the maritime sector. (Infomare)
Sanction this, sanction that – The EU is pressing the US to explore ways to mitigate sanctions on Russia’s Gazprombank, a financial institution key for keeping Russian natural gas flowing into the bloc, Bloomberg reports. The discussions are ongoing even after Moscow dropped a requirement that foreign buyers use only that bank when buying Russian gas, a move aimed at averting the impact of US the restrictions. The EU and US are discussing the type and scope of mitigation measures after some European governments and companies warned that the sanctions would pose a risk to the region’s security of supply, according to people with knowledge of the matter.
H2-ready gas power plants – Passing legislation enabling the construction of hydrogen-ready gas power plants must be a top priority for the German government before snap elections are held in late February, according to the German Association of Energy and Water Industries (BDEW). “The Power Plant Security Act is of enormous importance when it comes to safeguarding the energy supply of our country,” said Kerstin Andreae, head of BDEW, in an interview with Clean Energy Wire (CLEW). “The law regulates the construction of new hydrogen-ready gas power plants, and we need an agreement on how it should be implemented as soon as possible to allow related investments to be made,” she said. “Since building a power plant takes several years, construction must start as soon as possible. And to unlock the required investments, we need to begin auctioning these plants in 2025. The snap elections must not lead to further delays on this.”
Swiss buildings – The Federal Council adopted the implementation and research strategy for decarbonising infrastructure construction with a focus on wood. The implementation and research strategy is part of the Comprehensive Forest and Wood Strategy 2050, which is to be presented to the Federal Council in 2025. These measures will be implemented in stages by 2032.
Partanna AD – The Abu Dhabi Investment Office (ADIO) has partnered with Bahamian climate tech firm Partanna to establish its regional headquarters and a manufacturing facility in Abu Dhabi, marking a major step in promoting carbon-negative cement production. Announced during Abu Dhabi Business Week (Dec. 4-6), the partnership supports efforts to decarbonise the $400 bln global cement industry. Partanna said its innovative cement uses magnesium compounds from desalination brine instead of carbon-intensive clinker, creating a product that not only neutralises but actively removes CO2, transforming concrete into a carbon sink. The new Abu Dhabi facility, set to begin operations in 2025, will produce up to 3 Mt annually, offsetting 7.98 Mt of CO2, which Partanna said is equivalent to the carbon absorption rate of the Borneo Rainforest. The facility will serve as Partanna’s flagship operation, compatible with international standards and reinforced steel. It will also produce Verra-certified carbon credits, aligning with Abu Dhabi’s sustainability goals and supporting global scalability.
ASIA PACIFIC
Indigenous first – The Australian government has published its first ever First Nations Clean Energy Strategy. A government statement said the strategy has been developed with extensive input from First Nations people and provides a five-year national clean energy framework for governments, industries, and communities. The strategy is guided by six foundational principles, including that First Nations people maintain their right to live on their land, with access to reliable and affordable clean energy. First Nation’s peoples’ cultural heritage must also be recognised, protected, and celebrated throughout the clean energy transition. The government said it was working with states and territories to develop a plan to roll out the strategy.
J-Credit partnership(s) – Japanese project developer ByWill has concluded a collaboration agreement with Toyota Forestry Association and Ogaki Kyoritsu Bank to create and sell J-Credits from a forestry project, according to a statement released this week. The companies plan to register the initiative, which is expected to create around 6,000 carbon offsets, in FY2025. Meanwhile, Carbon EX recently said it will work with Nippon Denkei to support a sustainable agriculture project in Fukushima prefecture, which can reduce 1,000 tonnes of CO2 emissions over eight years.
Atoll deforestation – Coconut plantation agriculture has driven deforestation on more than 80% of Pacific atolls, with coconut palms now accounting for 58.3% of their forested area and 24.1% of their total land area, according to new research from The Nature Conservancy and UC Santa Barbara. Once-abundant native broadleaf forests now occupy only fragmented portions of their former range, as abandoned coconut plantations dominate the landscape. This shift has caused groundwater depletion, declining seabird populations, and adverse impacts on coral reefs, the study found.
Another one rides the bus – South Korea’s IBK Investment & Securities has partnered with South Chungcheong Province, the country’s ministry of environment, and 12 other organisations to convert 1,200 diesel buses into hydrogen-powered buses by 2030. The project also aims to increase hydrogen charging stations from 24 to 67. As the sole financial institution involved, IBK said it will offer preferential interest rates and financial consulting for the initiative. Additionally, it said it will generate profits for up to 10 years through selling carbon credits, helping to offset project costs. IBK sees this as an opportunity to expand carbon finance products and support SMEs in carbon neutrality industries. CEO Seo Jeong-hak reaffirmed IBK’s commitment to ESG management and national carbon neutrality goals. (SBS Biz)
AMERICAS
Odd bedfellows – A Mongabay investigation reveals that logging companies in the Brazilian Amazon are partnering with carbon credit projects under REDD+ initiatives. Brazil’s largest carbon credit generator Carbonext, which is partially owned by Shell, developed projects in Amazonas and Para states in collaboration with logging companies with extensive environmental violation records. The investigation shows that these partnerships are part of Carbonext’s strategy in the Amazon, despite the company’s claim of rigorous due diligence. REDD+ projects pay landowners to prevent deforestation, selling the resulting carbon credits to offset emissions. However, the investigation found logging activities often persisted alongside the projects, leading to concerns over their credibility. Authorities and experts argue that REDD+ schemes, when tied to illegal loggers, compromise the carbon market’s integrity and allow polluters to buy cheap credits instead of reducing emissions. Calls for stricter regulations have intensified, but Brazil’s carbon market remains largely unregulated, enabling voluntary projects to proliferate amid a lack of transparency. As Amazon states push for REDD+ legislation, experts warn that unresolved issues – such as partners’ environmental track records, deforestation risks, and limited benefits to local communities – undermine the climate credibility of these initiatives. The news comes after Brazil’s largest carbon credit scandal, revealed in June following a police operation, raised concerns about REDD+ projects in the Amazon. Operation Greenwashing targeted carbon initiatives on illegally acquired land, where owners were linked to logging operations suspected of extracting 38,000 truckloads of wood.
Year in review – On Thursday, the EPA announced its annual enforcement and compliance assurance results, reporting the strongest outcomes since 2017 over the 2024 fiscal year. The EPA focused on cutting climate super pollutants, including methane from il and gas operations, and its enforcement efforts concluded over 1,800 civil cases, led to charging 121 criminal defendants, and reduced more than 225 million pounds (102 million kg) of pollution in overburdened communities. The EPA received $1.7 billion in penalties, the highest level since 2017. The agency reported results across national enforcement and compliance initiatives, including the first national initiative on climate change.
Do more – At the quarterly Consumer Liaison Group (CLG) meeting on Dec. 4, climate activists urged ISO-NE board members to open all board meetings to the public and improve transparency around NEPOOL proceedings. Activists expressed ongoing frustration with ISO-NE’s lack of progress on accountability and public engagement. ISO-NE board members Cheryl LaFleur and Michael Curran acknowledged progress on transparency but admitted more work is needed. Curran noted New England’s unique level of public engagement compared to other regions. Speakers also called for ISO-NE to play a greater role in decarbonisation, while ISO-NE reiterated its fuel-neutral stance, with LaFleur and Curran advocating for carbon pricing despite a lack of regional consensus. ISO-NE admitted methane emissions from the gas supply chain are not currently accounted for, focusing instead on system generators but committing to following up on the issue. FERC Commissioner Judy Chang highlighted the need for long-term transmission planning and advocated for demand response to manage load growth. Chang also addressed concerns about gaps in state and federal oversight of transmission spending, suggesting opportunities to improve transparency. (RTO Insider)
BluSky and Lympha – The Connecticut-based CDR startup BluSky Carbon has reached an agreement with the New York financing and advisory firm Lympha under which Lympha will “support the financing needs” of BlueSky as it expands. The collaboration will focus on monetising CO2 Removal Credits (CORCs) from BluSky’s biochar facilities and securing funding for new projects by selling future credits. Lympha will support BluSky with blockchain-based project tracking, transparent data reporting, and real-time investor engagement, enhancing carbon credit validation and marketability. The companies said the deal will provide a boost to BluSky’s company’s carbon credit marketing and sales.
VOLUNTARY
Forest carbon MRV – US-based carbon project developer Pachama has introduced open-source tools to support high-integrity forest carbon crediting, the company announced on its website. The Canopy Height Maps (CHM) and Dynamic Control Area Baselines (DCAB) harness satellite data and artificial intelligence to improve project monitoring, calculate baselines, and ensure accurate credit issuance for reforestation and avoided deforestation projects. CHM tracks forest height to estimate carbon stocks, while DCAB establishes real-time baselines based on observed changes in control areas.
Teaming up – Octavia Carbon, a DAC project developer based in Kenya, has partnered with Thallo, a carbon credit marketplace. This partnership means that Puro-certified credits from Octavia Carbon, will—once issued, be available on the Thallo platform, they announced Friday.
AND FINALLY…
Poopchar – While biochar is heralded as a nascent carbon removal solution, biochar made from sewage sludge has not been well received in the town of Moreau, New York, Grist reported. Project developer Saratoga Biochar attempted build a biochar-from-sewage-sludge plant in Moreau as early as 2021, but faced significant community pushback on the basis of potential environmental impacts such as noxious smells and greenhouse gas emissions. The efforts included sign-waving protestors, bullying at gas stations, and the placement of hostile lawn signs, Grist profiled. The New York Department of Environmental Conservation ultimately denied Saratoga Biochar’s three permit applications necessary for construction of the plant, adding that the company cold not claim carbon removal from biochar as an offset for the plant’s emissions under state climate law.
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