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TOP STORY
Canada sets 2035 emissions target, prioritises international mitigation
Canada’s 2035 emissions target motions for reductions of 45-50% below its 2005 baseline, naming international mitigation efforts, such as the trade of credits under Article 6, as a priority area of climate policy for the next decade.
INTERNATIONAL
ANALYSIS: Forest carbon credits may find a home in Article 6
Forestry carbon credits, including from REDD avoidance and ARR reforestation sectors, now have the green light to scale via Paris Agreement carbon markets, following last month’s historic decision at COP29, but the exact methodologies that will be used, and strength of demand, remain uncertain.
Global emissions falling in hard-to-abate sectors, but remain off net zero trajectory -report
Global carbon emissions are falling in hard-to-abate industrial sectors, but trajectories remain off track to meeting net zero targets, according to a report published on Thursday.
Global CCS capacity to outstrip LNG volume -report
Global CCS capacity is estimated to outstrip global LNG supply volumes within the 2030s, yet would be unsustainable without a supportive commercial carbon price, according to forecasts released by a data and analytics company.
VOLUNTARY
Integrity Council approves Verra ARR methodology, carbon removal standard for quality stamp
The Integrity Council for the Voluntary Carbon Market (ICVCM) has approved Verra’s VM0047 methodology for its Core Carbon Principles (CCPs) quality label, as well as a fast-growing carbon removal standard, according to an announcement Thursday.
US consulting group makes big splash in CDR market with 50k purchase
A US-based consulting group has bought more than 50,000 carbon removal (CDR) credits for delivery over the next two years, it announced Thursday.
Google-backed rock weathering startup raises $60 mln to scale carbon removal
An enhanced rock weathering startup has raised nearly $60 million and secured around 300,000 tonnes in advanced purchase agreements to scale its carbon removal solution.
Non-profit lodges complaint against Verra over REDD+ carbon project
International carbon standard Verra has fallen foul of the Integrity Council for Voluntary Carbon Market (ICVCM) rules in investigating human rights abuse claims levelled at a REDD+ project, a non-profit has claimed Thursday, lodging a formal complaint.
EMEA
UK plans “once-in-a-generation” energy investment splurge in bid to hit 2030 clean power target
The UK has unveiled a $40-billion plan to massively scale clean energy by 2030, as part of a strategy published Friday that outlines how the country will achieve at least 95% clean power by the end of the decade.
UK farming gets act together on measuring carbon with launch of baselining pilot
The first steps to create a nationwide map of the environmental impact of UK agriculture are underway with the launch of carbon audits across 170 farms.
EU court dismisses lime maker’s challenge over free carbon allowance allocations
An EU court has dismissed two cases brought by a lime producer that sought to overturn a European Commission decision amending the free allocation of carbon allowances for its installations.
Stronger carbon price with complementary measures needed for decarbonisation -think tank
The current EU ETS price signal will take too long to fully decarbonise the economy unless elements that soften the mechanism are phased out and liquidity is increased, a report by a Brussels-based think tank said on Thursday.
European exchange to launch futures contracts for EU ETS2 next year
A major European energy and commodities exchange has announced the launch of futures contracts for the upcoming EU ETS2.
Euro Markets: EUAs track gas plunge to fall most in 8 months as trading picks up across curve
EU carbon prices fell the most in eight months on Thursday amid selling on the back of weakening gas prices, after the bullish run-up ahead of Wednesday’s options expiry gave way to some profit-taking as volumes along the whole curve picked up before the Dec-24 futures contract expires next Monday.
Abu Dhabi launches climate tech startup for mangroves restoration
A government-owned research entity in Abu Dhabi has launched a climate startup, which will use AI in a bid to conserve and restore thousands of hectares of mangroves and other natural ecosystems in the region.
Swiss CBAM compliance startup raises €1.5 mln in seed funding
A Swiss-based startup has secured €1.5 million in seed funding to advance its integrated hardware-software platform designed to facilitate compliance with the EU’s Carbon Border Adjustment Mechanism (CBAM).
AMERICAS
US EPA announces $1.6 bln grants for environment, climate justice
The US EPA awarded more than $1.2 billion in funding for 84 local environmental and climate justice projects on Thursday, as part of the Community Change Grants Program.
Brazil sets 2034 GHG reduction, waste oil targets centred on biofuels -media
Brazil’s National Council for Energy Policy (CNPE), an advisory body to the president, this week approved resolutions in support of targets for biofuels-based greenhouse gas (GHG) mitigation and to encourage the use of residual oils and fats in biofuels, according to local media reports.
Brazil ETS gets final presidential approval
Brazil’s long-awaited emissions trading system (SBCE) legislation has been sanctioned by President Luiz Inacio Lula da Silva, appearing in the Official Gazette of the Union (DOU) on Thursday.
Mexican state to debut REDD+ strategy, publishes ART TREES concept note
The state of Yucatan in Mexico will soon decree a jurisdictional REDD+ (J-REDD) strategy and has published a concept note on the ART TREES registry for J-REDD projects, anticipating 2.4 million credits over a five-year crediting period.
WCI Markets: CCAs skittish with options expiry uncertainty, WCAs claw back from auction stunner
California Carbon Allowances (CCA) options activity on ICE picked up this week ahead of the last expiry for the year, while surprise auction results of the Q4 permit sale defined volatility in Washington Carbon Allowances (WCA).
Minnesota regulators approve SCS CO2 pipeline
Minnesota’s Public Utilities Commission (PUC) on Thursday unanimously approved Summit Carbon Solutions’ (SCS) permit request to construct a segment of its proposed CO2 pipeline within the state.
California county board blocks proposed ethanol-to-hydrogen plant
Local officials in a California county unanimously voted to withdraw an environmental review exemption for a hydrogen plant in the Central Valley on Tuesday after the developer abandoned the project in the face of local pushback and a legal challenge.
US SAF producer debuts blended fuel facility, partnership with Drax
A US Gulf Coast developer of sustainable aviation fuel (SAF) announced the launch of its first commercial-scale facility, alongside a strategic partnership with UK energy company Drax.
Canadian biochar startup advances second production facility in Arkansas
A Canadian biochar developer is advancing plans to build its second commercial facility in Northwest Arkansas after signing a non-binding offtake agreement with a biochar buyer, the startup said Wednesday.
New geothermal technology could advance US zero-carbon power goals -report
Emerging geothermal methods could play an important role in achieving a zero-carbon electricity grid in the US, according to recent analysis by a global non-profit.
Brazil’s BNDES, Conservation International issue $3.8 mln call for forest restoration
Brazil’s National Bank for Economic and Social Development (BNDES) and the NGO Conservation International Brazil have launched the Forest for Well-Being call for proposals, featuring funding of up to R$23 million ($3.8 mln).
ASIA PACIFIC
BRIEFING: Indonesia urged to provide clarity on investor protection, Article 6 strategies to drive carbon market development
More clarity on investor protection and national strategies for the emerging Article 6 market is needed for Indonesia to unleash its carbon market potential, an industry conference heard this week.
NZ Market: NZU price rebounds as report reveals underlying ETS tension
The spot price for NZUs recovered slightly Wednesday, as research revealed greater tension in the emissions trading scheme (ETS) than current prices might suggest.
New Zealand’s Fonterra to switch out coal for 9% emissions drop
Dairy giant Fonterra has announced a new decarbonisation project to convert two coal-fired boilers to using low-carbon wood pellets at its South Island operations in South Canterbury, New Zealand expected to make a significant dent in its emissions.
Melanesian Pacific governments should strengthen regulations for forest carbon projects, study says
Melanesian Pacific governments should continue to engage with voluntary carbon markets as a novel approach to forest conservation, but regulatory frameworks need to allow for projects to be developed at a pragmatic scale, a report has urged.
Life extension for Australian plant paves way for “carbon bomb” gas field
Australia’s largest oil and gas company has been granted approval by state government to extend the life of one of its gas plants by 50 years, paving the way for the development of a vast gas field described by activists as a “carbon bomb”.
Coal mine SMCs could put brake on ACCU price, but few will make it onto the secondary market, report says
Supply of Safeguard Mechanism Credits (SMCs) from coal mines might prove an obstacle for the expected price hike in Australia’s main carbon units, analysts said Thursday.
Ambiguous carbon regulations, modest domestic demand keep Indonesia from realising carbon market potential -report
Indonesia has significant opportunities to generate millions of carbon credits each year, but unclear regulations around international carbon trading and low domestic demand are among the major issues preventing the country from having a vibrant market, according to a report released Thursday.
BIODIVERSITY (FREE TO READ)
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Ocean benchmark reveals big companies likely to be assessed
The World Benchmarking Alliance (WBA) has released a list of 63 companies out of the 125 that are very likely to be assessed on biodiversity in its forthcoming Ocean Benchmark.
UK companies urge govt to support development of nature markets
The UK government should ramp up efforts to support the development of nature markets, acting as buyer of last resort to drive demand, a membership organisation comprised of some major corporates and NGOs in the country has said.
Swiss hub launches to scale nature finance
A Switzerland-based non-profit has announced the establishment of a hub in the country aimed at advancing nature finance, with over 60 organisations interested in joining the initiative, Carbon Pulse has learned.
Biodiversity credit resource product launches
A set of pay-to-access resources on biodiversity credit metrics was launched on Thursday by analysis website Bloom Labs and consultancy the Biodiversity Footprint Intelligence Company (BioInt).
Biodiversity Pulse: Thursday December 12, 2024
A twice-weekly summary of our biodiversity news plus bite-sized updates from around the world. All articles in this edition are free to read (no subscription required).
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EVENTS
Carbon Forward 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.
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Premium job listings
- Asia-Pacific Environmental Markets Correspondent, Carbon Pulse – Remote
- Event Coordinator, Carbon Forward – Remote (UK)
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BITE-SIZED UPDATES FROM AROUND THE WORLD
EMEA
Bigger picture – The UK’s 2030 goal for 100% clean power is just one step on the way to a bigger mission in the 2030s and beyond when the whole electricity system needs to expand, as heat and transport become increasingly electrified, said the UK Energy Research Centre (UKERC) in a new report. The study emphasises that the energy transition must deliver for vulnerable consumers, through measures such as renewed energy efficiency delivery and electricity market reform. It stresses that the transition away from gas be carefully and strategically planned, and that nature be placed at the heart of the energy transition. As half of industrial energy consumption is still provided by fossil fuels, a comprehensive industrial strategy with a strong focus on decarbonisation will be essential to achieve the UK’s net zero goals, wrote the UKERC.
Tough negotiations – Germany has now abandoned plans to funnel €350 mln into hydrogen projects, putting clean-fuel goals even further from reach, Bloomberg reports. The funding had been available through a European Hydrogen Bank programme allowing the use of national subsidies to get the industry off the ground. But the European Commission and Germany failed to agree on terms, meaning the money will now go to other green projects or flow back into the federal budget. There were “very tight specifications,” the country’s Economy Ministry said in an email explaining the decision. Berlin got permission to distribute its own subsidies to bidders that lost out, with the EU insisting on a price ceiling of €1.44 per kilogram. Many companies deemed that too low, given that Germany’s high power prices make output costly, according to the reporting.
German gas delays threaten coal phaseout – The delays to public support auctions for new hydrogen-ready gas-fired power plants in Germany could also put at risk the timetable for phasing out coal, German media reported this week. Specifically, the 2030 phaseout of coal power in North Rhine-Westphalia could be at risk, with public broadcaster WDR reporting the fossil fuel may be needed there until at least 2033, without gas plants to help back up renewables. The gas plant delay comes from the implosion of the German government, which means a Power Plant Security Act has been put on hold.
German renewables power on – A good 4% more electricity is expected to be generated from renewables in Germany in 2024, the Federal Environment Agency reported on Thursday. However, the decarbonisation of heating and transport remains a challenge, with <1% growth in the share of renewables in heating, and a big drop in biofuels use due to regulatory changes. In the medium term, the switch to renewables in transport is expected to happen through electrification, the agency said. Meanwhile, the Federal Network Agency reported record participation in its latest tender for onshore wind turbines on Nov. 1, with more than twice as many bids submitted as the previous high from the previous tender, or almost as many as in all tenders in 2023 combined. There were 528 bids with a volume of 6,083 MW for a tendered volume of 4,094 MW. The average volume-weighted award value fell slightly to 7.15 ct/kWh, from 7.33 ct/kWh in the previous round.
Adaptation strategy adopted – Despite the current infighting, the German government succeeded in signing off on a climate adaptation strategy on Wednesday that will better prepare the country for extreme weather events such as heat waves or floods. These events are expected to become more frequent due to global warming. The strategy sets out 33 targets and over 180 actions. Climate adaptation was made a task for the state by law in 2023, with the government mandated to come up with an adaptation strategy with quantifiable goals. “For the first time, we are setting measurable targets and indicators,” said Environment Minister Steffi Lemke. Although the ministry cautioned that some targets “do not come with a reference or target value and rather just indicate trends”. The Association of Local Public Utilities said the strategy lacked “a clear funding plan”. Meanwhile, two new reports released by the World Economic Forum warned of steep financial losses for businesses that fail to adapt to climate risks – they could lose up to 7% of their annual earnings by 2035, an impact similar to Covid-19-level disruptions every two years (see reports 1 and 2).
“Shit situation” – Norway’s two governing parties want to scrap an electricity interconnector to Denmark, with the junior coalition partner also calling for a renegotiation of power links to the UK and Germany, as sky-high prices trigger panic in the rich Nordic country, the FT reports. A lack of wind in Germany and the North Sea pushed electricity prices in southern Norway to their highest level on Thursday since 2009 and almost 20 times their level just last week. “It’s an absolutely shit situation,” said Norway’s energy minister Terje Aasland. The ruling centre-left Labour party now says it wants to campaign in next year’s parliamentary election, set for September, to turn off electricity interconnectors to Denmark when they come up for renewal in 2026. Its junior coalition partner, the Centre party, has long demanded an end to the Danish connection and also wants to renegotiate existing interconnectors with the UK and Germany.
Bank not borrow – The Banque de France has published a paper looking at a so-called ‘general equilibrium’ approach to carbon permit banking. In the study, the researchers look at the general equilibrium effects of ‘banking’ carbon permits during the transition to a climate-neutral economy by 2050. To this end, they have developed a dynamic model, in which firms are regulated by an emissions trading system. Firms are allowed to transfer unused permits from one period to the next (banking), but the reverse direction (borrowing) is prohibited. Allowing banking gives firms the opportunity to smooth their demand for permits over the business cycle, they argued.
Benchmark press – The EU Economic and Monetary Affairs committee negotiators struck a deal late on Thursday with the Council on new benchmarks linked to some climate-related mechanisms. As prices of financial instruments depend on benchmarks, negotiators agreed that the new rules should apply to critical benchmarks, significant benchmarks and certain commodity benchmarks, as well as climate-related benchmarks such as EU Climate Transition Benchmarks (EU CTB) and EU Paris-aligned Benchmarks (EU PAB), in order to assure adequate supervision, according to the release. The spot foreign exchange benchmarks complying with certain criteria have been also kept in the scope. Negotiators confirmed the threshold of a total average value of at least €50 bln to define a significant benchmark, while introducing refinements to methodology to calculate the threshold.
ASIA PACIFIC
M.A.D on nuclear – Australia’s opposition Coalition party has released the costings of its proposed nuclear energy policy in Australia, claiming their plan would cost some A$330 billion ($200 bln) over 25-years, A$263 bln cheaper than the cost of Labor’s policy. The report and modelling, by think tank Frontier Economics, claims nuclear power plants would provide up to 14 GW of electricity to the National Electricity Market by 2050. The release of the costings have been delayed multiple times by the Coalition for political reasons and have been met with extreme scepticism by energy experts and climate groups. They also contradict recent analysis by the CSIRO which as consistently found renewables and storage, firmed with natural gas, to be the cheapest electricity option and nuclear the most expensive.
Positive shift – Indonesia’s plan to phase out on-grid coal fired power plants by 2040 has been welcomed by Climate Action Tracker (CAT) as a “positive shift”, but has said in fresh analysis that key challenges need to be overcome. The analysis said the complexity of Indonesia’s power sector and the existing policy and regulatory framework present “structural barriers” to implementing these pledges quickly. CAT said President Parabowo Subianto’s leadership in reforming the regulatory framework and aligning policies is a prerequisite to achieving its targets.
Forest investment – Tokyo-listed Toho Gas has signed an investment agreement with Manulife Forest Climate Fund (MFCF), a global forestry investment fund focusing primarily on North American assets, it said in a statement released this week, without elaborating on financial details. It comes after Idemitsu Kosan, one of Japan’s biggest oil refiners, earlier this year announced its investment in MFCF.
True value for money – TrueMoney, a digital financial platform in Thailand, has partnered with Carbonmark to introduce a carbon credit trading feature on its app, which will allow users to directly support global climate action and encourage to live sustainably, the Nation reported. Through the initiative, around 20 million monthly users of TrueMoney will be able to purchase and retire carbon credits by purchasing packages that cost as little as 6 baht ($0.18). Users will be able to buy carbon credit tokens from a variety of certified projects, including reforestation, renewable energy, and waste management, offsetting 72 kg of carbon emissions over seven days, the media outlet said.
Exploring removals – Mitsui OSK Line, along with Mitsubishi Corporation and Climeworks AG, a developer of direct air capture technology, today hosted an event to discuss and exchange ideas on creating a new market for technological CO2 removal. A total of 54 project developers and major companies from Japan and overseas attended.
AMERICAS
Not so fast – In the ongoing battle of wills between Brazil’s federal (MPF) and Para state (MPPA) public prosecutors, on one side, and Para’s Secretariat for Environment and Sustainability (SEMAS), on the other, the MPF and MPPA last Friday issued a joint recommendation to SEMAS adding a new demand. Para must correct a misrepresentation of the R$1 bln ($180 mln) agreement between itself and the LEAF Coalition, they have said, in addition to improving transparency and local consultation. The prosecutors have in a press release criticised a “misleading” announcement by the state news agency regarding a supposed carbon credit “sale”. No sale has occurred, they argue: LEAF has secured from Para a promise to sell nearly 12 mln credits at $15 per tonne, contingent on meeting requirements that have yet to be fulfilled.
Fuming at ARB – California Democrats are threatening California ARB with increased oversight in retaliation for the regulator’s decision to delay a landmark corporate climate disclosure law by a year, according to a letter obtained by Politico. Democratic State Senators Scott Wiener and Henry Stern wrote the letter to ARB Chair Liane Randolph on Wednesday after the regulator decided to waive penalties for companies that fail to fully report their emissions in 2026, as required by Senate Bill 253 (SB 253) enacted last year but has faced implementation delays. SB 253 survived legal challenge from a US business lobby last month. The letter from lawmakers expressed the senators’ “serious concern” over the decision, and it notified Randolph of their plans to increase oversight if the law’s implementation isn’t hastened, Politico reported.
Small tax to axe – Canadian carbon pricing – including the consumer-facing carbon levy and rebate scheme – had a minimal impact on inflation over the past five years, contributing just 0.5% to the overall 19% increase in consumer prices, University of Calgary economists claimed in a study published Thursday. The study’s conclusions alleged that most price increases were driven by global factors such as surging energy prices and supply chain disruptions, rather than domestic climate policies. The authors suggested that the pricing has had indirect effects on other goods and services, but these were still modest in comparison. The impact of emissions pricing varied across household types, with lower-income households most vulnerable to price increases, but also receive the largest benefit from the carbon tax rebate system. Impacts also varied across regions and energy use, with provinces more dependent on fossil fuels, such as Saskatchewan, experiencing higher costs than Quebec, where renewable energy has a predominant role in electricity generation.
Tarriff standoff? – Ontario Premier Doug Ford responded on Wednesday to President-elect Donald Trump’s tariff plans, threatening to cut energy exports to the United States. He did not address whether Ontario has the authority to turn off US power without federal approval in a Thursday press conference, CBC reported. Ford told Canadian premiers that Ontario, the largest province, was considering American products that could be subject to retaliatory tariffs in response to US threats of 25% tariffs.
Reporting updates – Quebec on Wednesday enacted amendments to its regulation on mandatory emissions reporting of some contaminants. The revisions include requirements for natural gas distributors to achieve 10% biomethane in their distribution network by 2030. The changes aim to ensure that volumes of biomethane are biogenic, injected into a natural gas network physically connected to a Quebec distributor network or injected directly into a Quebec distributor network, and are sold only once. The amendments also require emission factors to be updated annually to reflect changes in the thermal power plant fleet of US provinces and states from which imported electricity originates. These changes will come into effect on Jan. 1, 2025, said the province’s environment ministry.
VOLUNTARY
New partnership – Waste stream management company Strategic Environmental & Energy Resources (SEER) partnered with carbon credit financier DevvStream Holdings to develop a decarbonisation and carbon credit monetisation programme. SEER seeks to monetise insured carbon credits out of its projects, including its planned biocarbon production facilities in Texas and Saudi Arabia, according to the Thursday announcement. SEER provides management services for environmental, renewable fuels, and industrial waste streams.
INVESTMENT
Words vs action – There is a glaring gap between what investors say and what they actually do when considering sustainability, according to the 2024 Institutional Investor Survey by Ernst & Young (EY). Despite the worsening climate crisis and growing sustainability concerns, 66% of investors say their institution is likely to decrease its consideration of ESG in decision-making, the survey found. And while 88% of investors surveyed have increased their use of ESG information, 92% worry that ESG-related initiatives harm short-term corporate performance. Macroeconomic factors such as trade restrictions and tariffs, cost of capital, and labour cost and availability come high up their consideration list when trying to gauge changes in economic performance and the business cycle. As much as 85% of investors say that greenwashing is a worsening problem — yet 93% seem confident that companies will meet their sustainability targets, EY found.
AND FINALLY…
The C word – A top Biden administration official said Wednesday that addressing climate change’s health impacts over the next four years might require health officials to avoid mentioning climate change. “As we engage the new administration, I think we are going to need to adjust our terminology and our language,” Adm. Rachel Levine, the assistant secretary for health, said during an event at the American Geophysical Union’s annual conference. The “health consequences” of climate change, from extreme heat stress to increased rates of vector-borne diseases “are happening,” she said, and the Trump administration will have to address those health issues regardless of whether they connect them to climate change. “I will remain hopeful that we can engage the administration about these facts, and then we can try to find a common language with which to address them,” she said. “I don’t think changing the words signifies retreat.” (E&E News)
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