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WEEKEND READS
PREVIEW: Five things to watch on EU climate policy in 2025
With the Polish EU Council presidency focusing on energy security in the first half of the year, the initiative on climate is expected to come from the European Commission, with a series of proposals due in the first quarter, including a much-awaited Clean Industrial Deal at the end of February.
FEATURE: Carbon markets will almost certainly be counted towards climate finance goal, even without specific mention
The money flowing into international carbon markets could be counted in future tallies of global climate finance — although the lack of a specific mention in the final agreement on a new global goal at COP29 means that the extent to which this happens, and how trust in the market is ensured, is largely up in the air.
FEATURE: Canadian oilsands still silent on environmental targets, six months into new greenwashing laws
The once-public emissions reductions targets of Canadian oilsands companies remain absent six months following the introduction of new greenwashing laws, as uncertainty persists regarding specifics of what can be held to account under the new mandate.
VOLUNTARY
Verra calls on UN body to re-evaluate carbon credit exclusions from CORSIA Phase 1
Verra has questioned UN agency ICAO’s decision to exclude some of its methodologies from Phase 1 (2024-26) of the CORSIA international aviation offsetting scheme, including its new protocols across forestry and energy sectors.
ICVCM stresses difference of opinion “healthy” after carbon experts step down over REDD+ decision
The Integrity Council for the Voluntary Carbon Market (ICVCM) has underlined that internal differences in opinion are important after members of the stakeholder initiative’s expert panel stepped away from the organisation over a recent decision to approve three REDD+ forestry crediting methodologies.
GEM’s carbon registry sale to Qatar’s GCC cancelled
Global Environmental Markets’ (GEM) sale of its fully integrated carbon registry business to Qatar-based offset standards body Global Carbon Council (GCC), which was announced at COP28 in Dubai last year, has been cancelled, the parties told Carbon Pulse.
Climate fund opens call for carbon removal proposals
A climate fund has opened its 2025 call for proposals for durable carbon removal projects, it announced Friday.
Meta, CarbiCrete team up to accelerate low-carbon concrete production
Canadian cleantech firm CarbiCrete announced on Thursday a carbon financing partnership with Meta Platforms to advance its cement-free concrete production technology, aiming to cut emissions in the construction sector.
Global efforts to boost blue carbon ecosystems may come with heightened mercury risks, scientists warn
Expanding coastal ecosystems to fight climate change – so-called ‘blue carbon’ initiatives – could unintentionally increase global mercury pollution, posing a risk to human health and the environment, scientists warn.
ASIA PACIFIC
India defines green steel, sets maximum threshold for emissions intensity
India’s Ministry of Steel has released a green steel taxonomy as the South Asian country steps up efforts to control CO2 emissions in its heavy industry.
Australian opposition’s nuclear plan would see higher emissions for longer -report
Emissions under the Australian opposition’s proposed plans for nuclear energy would see coal-fired power stations operate for longer and subsequently higher emissions, according to a costings report it released Friday.
Japanese developer plans credits from Thai rubber
A Japanese project developer has signed a Memorandum of Understanding (MoU) with Thailand’s Rubber Authority on developing carbon credits from biochar, which it hopes will help the world’s rubber industry decarbonise.
China tightens emissions standards for coalbed methane
China has revamped its national emissions standards for coalbed methane, in the country’s latest attempt to curb methane output.
SK Market: Monthly permit auction fails to sell out, spot prices hovers around $7
South Korea this week sold around 70% of the allowances on offer in its monthly CO2 permit auction amid dwindling buying interest, while spot prices in the secondary market retreated to around 10,000 won ($6.96).
CN Markets: CEAs drop below 100 yuan, trading volumes surge
China’s national carbon market saw allowance prices drop below the 100-yuan ($13.74) mark over the past week amid selling pressure, but trading remained robust as emitters rushed to meet the end-of-month compliance deadline.
EMEA
Ireland must cut emissions 6.3% per year by 2040 to meet targets, advisors say
Ireland must cut greenhouse gas emissions by 6.3% annually in the next 15 years under a new carbon budget proposal from the country’s independent advisory body on climate change.
Montenegro seeks CBAM exemption by linking power system with EU -media
Montenegro has asked for an exemption from the first year of the EU’s Carbon Border Adjustment Mechanism (CBAM), the country’s energy minister said on Friday as reported by local media.
FEATURE: Sinking biomass in anoxic basins attracts scientific interest but no guarantee of regulatory approval
Several startups are proposing sinking biomass in anoxic basins, such as the Black Sea, to sequester carbon and generate removal credits, though they face hurdles related to wider scientific approval and regulatory sign-off before they can move ahead.
Economists urge caution on carbon taxation in Sub-Saharan Africa, citing ineffectiveness and poverty risks
Introducing carbon taxes in sub-Saharan Africa (SSA) could prove both ineffective in curbing emissions and detrimental to the region’s poor, economists warn in a new study
Euro Markets: EUAs hit five-week low ahead of benchmark contract expiry as prompt gas tumbles
EU carbon allowances fell to a five-week low on Friday, tracking a big drop in natural gas prices as reports emerged of negotiations to keep some Russian exports flowing to Europe next year, while carbon traders began to shift their attention to the Dec-25 EUA futures contract, which takes over as the benchmark early next week.
Allowance banking in carbon markets essential for policy effectiveness, stable prices -paper
Allowing permit banking in emissions trading systems is crucial to their success, and neglecting this feature could lead to an underestimation of carbon prices and economic impacts, according to a central bank working paper.
HeavyFinance secures €14 mln in SME loans to support soil carbon farming
Lithuania-based HeavyFinance has announced a partnership with Multitude Bank, a subsidiary of the Nordic-born FinTech Multitude Group, to support sustainable farming practices across Europe.
AMERICAS
US awards $335 mln to fund sustainable forestry
The US Department of Agriculture announced this week awards of nearly $335 million in financial incentives under the flagship Inflation Reduction Act (IRA) for private forest landowners to manage their forests sustainably in partnership with states.
US DOE invests $6 mln in CO2 Texas offshore transport
The US Department of Energy announced on Friday a $6 million investment in a transport project from onshore facilities to geologic storage off the coast of Texas.
Maryland climate advisory board votes to delay pursuing ETS
A Maryland climate commission voted Thursday to recommend the state delay adoption of an economy-wide cap-and-invest programme in order to allow for more time to study its economic impacts.
US projects target direct air capture development, biogas carbon credits
A direct air capture (DAC) developer is set to launch a pilot plant in New Mexico, while a renewable fuels producer has signed an agreement to generate biogas carbon credits, according to announcements made Thursday.
CFTC: Traders continue to shift focus to 2025 for CCA, RGGI
Traders close out V24 open interest (OI) in favour of V25 California Carbon Allowance (CCA) and RGGI Allowance (RGA) holdings, while reducing Washington Carbon Allowance (WCA) OI ahead of results from a stunning Q4 permit sale, according to data released Friday from the US Commodity Futures Trading Commission (CFTC).
RGGI appoints new board chair, approves 2025 budget
The Regional Greenhouse Gas Initiative (RGGI) Board of Directors unanimously elected a new slate of officers to serve on the programmes three committees on Friday, including the selection of a new board chair.
CORRECTION – Large US-focussed carbon ETF liquidates over 40% of CCA holdings
A US-listed carbon ETF has reduced over 40% of its California Carbon Allowance (CCA) holdings on Monday, its website records showed Tuesday.
INTERNATIONAL
BRIEFING: Next-generation geothermal emerges from the shadows, backed by a series of new reports
A series of high-profile reports on geothermal energy have been published in recent weeks, as hopes for the viability of next-generation technologies have increased, and policymakers have indicated their increasing interest in supporting the industry.
UNFCCC unveils template documents to help developers of Article 6 carbon projects
The United Nations Framework Convention on Climate Change (UNFCCC) has published a set of templates to guide project developers wishing to engage with the Paris Agreement Crediting Mechanism (PACM) under Article 6.4 of the Paris Agreement.
AVIATION/SHIPPING
US SAF scale-up depends on tax credit extension, updated renewable fuel standard -report
Sustainable aviation fuel (SAF) in the US requires deliberate policy efforts to unlock broad-based adoption, including both reform of current programmes and introduction of new carbon pricing measures, a think tank wrote in a December report.
BIODIVERSITY (FREE TO READ)
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Asset manager sets up Europe-focused biodiversity fund, targets raising €200 mln
A Luxembourg-headquartered asset manager has launched a fund aimed at supporting European companies and projects that contribute to biodiversity conservation and restoration, with the target of raising €200 million.
Insurance industry key to de-risking biodiversity credit markets, UNEP FI says
The UN Environment Programme Finance Initiative (UNEP FI) released on Thursday the first global guide for insurers to prioritise actions for nature, stressing their role in achieving global biodiversity goals, including through scaling emerging markets.
Australia’s peak land conservation body urges govt to ramp up nature spending
Australia must significantly increase its spending on and administration of nature, including putting more money into its planned biodiversity market and change its approach to generating carbon credits, according to the country’s peak conservation body.
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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
- Event Coordinator, Carbon Forward – Remote (UK)
- Asia-Pacific Environmental Markets Correspondent, Carbon Pulse – Remote
See all listings or post a job
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We’re offering new subscriber organisations 15 months of access to our news and intelligence for the price of 12. Purchase an annual subscription by Dec. 20, 2024, and get 3 extra months for free. Have we recently quoted you a price? Our 15-for-12 offer applies to that too, if you purchase your subscription by Dec. 20. Email sales@carbon-pulse.com to inquire.
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BITE-SIZED UPDATES FROM AROUND THE WORLD
INTERNATIONAL
Shift in approach – It’s time for a shift in approach to carbon credits, wrote the FT’s Simon Mundy in an opinion piece, arguing that governments could unlock a surge of investment by integrating removal credits with mandatory carbon pricing schemes. Morgan Stanley analysts predict that the EU, and other jurisdictions, will at some point allow companies to use credits to meet their obligations under domestic emissions trading and carbon tax regimes, which would likely only apply to removals and would help to unlock the nascent CDR market that urgently needs to grow to reign in climate change. Mundy points to the fact that since Mark Carney’s rallying cry for investing in carbon credits in 2020, the market has stumbled badly, with the second consecutive year of decline largely due to integrity issues. Even if efforts by the Integrity Council for the Voluntary Carbon Market (ICVCM) and UN Article 6 framework stack up to improve perceptions of integrity, corporates will still need incentives to buy, which will need to come from policy and regulation such as the EU’s new Carbon Border Adjustment Mechanism (CBAM), Mundy wrote. The question of whether to allow international carbon credits to count towards CBAM is under consideration by the EU.
EMEA
Community affairs – At the annual meeting of the Energy Community Ministerial Council in Vienna, representatives agreed that contracting parties should propose a carbon pricing model by mid-2025, with a final decision expected by the end of that year. This initiative aligns with EU climate goals and the enlargement perspective, supported by a regional emissions trading system impact assessment presented by the European Commission. The council adopted the first Projects of Energy Community Interest (PECI) list for 2024, featuring six key energy infrastructure projects worth €445 mln, including transmission upgrades and energy storage in the Western Balkans and Ukraine. This list aligns with the EU’s revised Trans-European Networks for Energy regulation and will be updated every two years. Discussions also focused on electricity market integration. Transmission System Operators (TSOs) were encouraged to prepare for regional market coupling, essential for integrating with the EU’s single electricity markets. The council stressed the importance of transposing the Electricity Integration Package (EIP) by Q1 2025 and finalising the Market Coupling Operator Integration Plan (MCO IP) by January. New European Energy Commissioner Dan Jorgensen highlighted the benefits of aligning contracting parties with the EU’s internal electricity market ahead of accession. (Balkan Green Energy News)
Small uptick – Germany is on course for a 54% share of renewable power production in 2024, according to figures published by the Federal Environment Agency (UBA). With an output of about 285 terawatt-hours from renewables, this would mean an increase of about 4% compared to the previous year, when the renewable share was 52.5%. However, it’s still far off the country’s aim to source 80% of electricity demand from renewables by 2030. Wind and solar power contributed around three-quarters of the renewable energy output, with the remainder coming from biomass, hydro power, and geothermal plants, which achieved a combined 2% production increase this year. The use of renewable energy for heating increased by less than 1% during the period, however. (Clean Energy Wire)
Nature and people – Rainforest Foundation UK (RFUK) has pledged its support of the Core Human Rights Principles for Private Conservation Organizations and Funders, published this week following a multistakeholder process led by the United Nations Environment Programme (UNEP). The move marks a big step forward in addressing the intersection of biodiversity conservation and human rights, RFUK stated on its website. There have been few such standards until now for private conservation funders and organisations, who account for a growing share of the global biodiversity funding landscape, it said. The principles were developed over two years (2022–2024) through extensive consultations with Indigenous Peoples, Afro-descendant and other tribal communities, rights-based organisations, private conservation entities, funders and experts. They clarify the application of existing international human rights standards to private conservation, and aim to prevent human rights abuses, ensure meaningful participation of affected communities, and guarantee accountability through effective remedies. The 10 core principles are outlined here.
ASIA PACIFIC
Set sail – Mitsui OSK Lines (MOL) has entered into a long-term charter contract of six LNG carriers with QatarEnergy, they announced. The vessels will be the QC-MAX model and have a 271,000 cubic metres capacity. The ships will built at Hudong-Zhonghua Shipbuilding in China for delivery between 2028-31, and jointly owned with COSCO Shipping LNG investment, it said. The contract will take the awarded vessels to MOL to 13, and is expected to meet LNG supply demand from QatarEnergy’s North Field gas expansion development.
Heat treatment solution – South Korea’s Hyundai Steel has developed a low-carbon heat treatment technology with Hyundai Motor, according to a statement released this week. The new solution, if implemented for mass production of automobile parts, can shorten the process time by 78% and reduce carbon emissions by around 40%, Hyundai Steel said. The steelmaker said it plans to expand the application of the technology to other fields, such as heavy equipment and machinery tools.
Rice alliance – NTT Communications has teamed up with Biomass Resin and Pasona to promote sustainable agriculture and create carbon credits by extending the mid-drying period in rice cultivation, the companies announced Friday. NTT will provide agricultural IoT sensors, while Biomass Resin will help farmers adopt new cultivation methods.
Roadmap – South Korea’s science ministry has completed a roadmap for achieving carbon neutrality across 17 areas, including wind power and energy storage, according to Yonhap. The government will push for developing next-generation offshore wind turbines, integrated energy systems, and eco-friendly data centres. The country has pledged to reduce its GHG emissions by 40% by 2030 from the 2018 levels and reach carbon neutrality by 2050.
Emission no-go-go – The decision by the Western Australian government to wash its hands of anything related to emissions and leave it entirely to capital Canberra and the Safeguard Mechanism has been welcomed by South32, which said Friday it would extend the life of its alumina refinery as a result. In October environment minister Reece Whitby said constitutional advice had recommended it not take emissions into account. The move was welcomed by industry, which suggested other states follow suit. “In particular, it is consistent with the Western Australian Government’s Greenhouse Gas Emissions Policy for Major Projects2, with greenhouse gas emissions to be regulated in accordance with the Commonwealth Government Safeguard Mechanism and unnecessary duplication between Commonwealth and State regulation removed,” the company told the local bourse Friday.
AMERICAS
But first, standing – The US Supreme court will hear an appeal filed by fuel producers who object to California’s vehicle emissions standards, the AP reported Friday. California was granted an EPA waiver in 2022 for its Advanced Clean Cars rule, which allows the state to set more stringent emissions limits than the national Clean Air Act. The Supreme Court said it would not review the waiver itself but whether the fuel producers had legal standing to challenge the waiver. California currently mandates 100% of light-duty vehicle sales to be zero emissions by 2035, as per its Advanced Clean Cars Rule II.
A moot matter – Parties in the lawsuit filed by trade group Oil & Gas Workers Association against the federal government’s LNG export permitting pause submitted a joint motion on Thursday to the US district court in the Western District of Louisiana, asking to stay court proceedings until Apr. 1, 2025. The parties said that staying the proceedings would “preserve party and judicial resources” because the case was likely to become moot in a matter of months, without explicitly referring to the incoming Trump administration that might reconsider Biden’s LNG export permitting pause. If the court granted the stay, both parties committed to submit a joint status report no later than Apr. 1, 2025 that would either inform the court that the matter was moot or that they needed to recommence litigation.
EV charging – Electric vehicle charging company EVgo announced on Thursday the closing of a $1.25 bln loan guarantee facility from the US DOE Loan Programs Office to support the nationwide deployment of about 7,500 fast charging stalls. The buildout would allow EVgo to more than triple its network footprint by 2029, according to a company press statement. The five-year deployment period will begin in 2025, ramping annually to reach 7,500 new chargers.
Gas ban opportunities – The city of Seattle and a group of climate advocates filed a lawsuit this week challenging a ballot measure that voters in Washington state passed this year blocking gas bans. Initiative 2066 passed last month effectively banning state and local governments from instating gas bans. Environmental groups say Washington does not currently have gas bans in place, E&E News reported on Friday. Health and environmental groups, the city of Seattle, and King County filed the suit in King County Superior Court against the state of Washington, alleging that voters were misled by the ballot initiative by failing to spell out the sweeping impacts on state laws.
Logging Vermont – A federal proposal to log thousands of acres in Vermont’s Green Mountain National Forest has reignited longstanding disputes with environmentalists. The Telephone Gap Integrated Resource Project, covering 35,489 acres (14,400 ha) of national forest and nearly 40,000 acres of nearby state and private land, includes plans to harvest 7,279 acres over seven to ten years, enhance trails and recreation, and plant 3,500 acres of new trees. It was originally designed to demonstrate how the Forest Service can balance timber harvesting with reducing carbon emissions. (E&E News)
Advancing CCS – Michigan state senators passed three CCS bills out of committee on Thursday, advancing them to the Senate floor. The bills include SB 1131, which seeks to establish control of carbon sequestration well permitting at the state’s Department of Environment, Great Lakes, and Energy. Business groups say the bills are needed to compete for carbon capture funds, but environmental advocates say they lack sufficient environmental protections, Planet Detroit reported on Friday.
VOLUNTARY
Document dump – Verra has released a document detailing the process for applying the ICVCM Core Carbon Principles (CCP) label to Verified Carbon Units (VCUs) from projects under its Verified Carbon Standard (VCS) programme. This follows the ICVCM’s recent approvals of the VCS (May 2024) and methodologies VM0048 (Nov. 2024) and VM0047 (Dec. 2024). Projects using ICVCM-approved methodologies will automatically receive the CCP label on issued VCUs if they meet the necessary criteria. If a label is not applied automatically or a project updates its methodology, proponents must follow the ICVCM CCP Label Guidance to request the label from the Verra Registry. A digital form for such requests will be available in 2025, with instructions provided upon its release. Verra has also introduced two procedures for projects wishing to update methodologies – Methodology Change and Requantification Procedure, v4.0 for past verification periods, and Procedure to Change Methodology through a Project Description Deviation, v4.0 for current and future monitoring periods. A webinar explaining these procedures was held on Oct. 24.
Buildings emissions – Verra has also opened a public consultation on a minor revision to its Verified Carbon Standard (VCS) Methodology VM0008 Weatherization of Single-Family and Multi-Family Buildings, v1.0. The consultation will run from Dec. 12, 2024, through Jan. 13, 2025. VM0008 quantifies the GHG emission reductions that result from the weatherization of dwellings and the implementation of energy efficiency measures in single-family homes, multi-family buildings, or mobile homes. Examples include improved air sealing, enhanced insulation, and replacements of refrigerators or air conditioning units. The proposed revision expands the methodology’s scope to include heating and cooling systems, such as heat pumps and heat pump water heaters.
Clean cooking methodology review – The Clean Cooking Alliance (CCA) announced its Comprehensive Lowered Emissions Assessment and Reporting (CLEAR) Methodology for clean cooking has been submitted to voluntary carbon crediting programs for review and approval. The methodology is the first to cover all common cooking transition scenarios, eliminating the need for multiple methodologies for cookstove carbon projects, it said. It is intended to become the standard methodology for cookstove projects under Articles 6.2 and 6.4 of the Paris Agreement and throughout the VCM. Further details here.
AND FINALLY…
Greek tragedy – TikTok’s annual carbon footprint is estimated to exceed that of Greece, according to Greenly, a Paris-based carbon accounting consultancy. In 2023, TikTok’s emissions in the US, UK, and France totalled 7.6 million tonnes of CO2e, surpassing Twitter/X and Snapchat in the same regions. With 1 bln users globally, its carbon footprint likely reaches 50 Mt – close to Greece’s annual emissions of 51.67 Mt. The platform’s high emissions stem from its addictiveness, with users spending an average of 45.5 minutes daily, compared to 30.6 minutes on Instagram. This extended usage means the average TikTok user generates 48.5 kg of CO2e annually, equivalent to driving 123 miles in a petrol car. YouTube follows at 40.2 kg (102 miles), while Instagram is at 32.5 kg (82.8 miles). Data centres account for 99% of TikTok’s emissions, alongside device charging. Unlike competitors such as Meta and Google, TikTok does not publicly report emissions data. Although it aims for carbon neutrality by 2030 through its “Project Clover” initiative, only one renewable data centre has been built so far. TikTok’s future emissions reporting may depend on its ownership. A US court has mandated parent company ByteDance to divest TikTok by Jan. 2025, though this may be delayed or reversed under a potential Trump administration. (Guardian)
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