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TOP STORY
Bill Gates-backed fund piles millions into Canadian carbon removal developer
Bill Gates’s clean tech venture fund has stumped up $40 million to invest in a carbon removal startup aiming to create a Canadian testing ground for multiple direct air capture (DAC) technologies, the companies said on Wednesday.
INTERNATIONAL
UN cancels tender to build centralised Article 6 registry system
A UN tender to build a centralised registry system for carbon trading under Article 6 of the Paris Agreement has been cancelled, Carbon Pulse has learned, though an interim solution is expected to be operational by year’s end.
Coal demand growth slows, but no decline in carbon emissions in sight -IEA
Peak oil has been joined by a plateau in coal, according to the International Energy Agency’s (IEA) three-year outlook for the commodity, which saw a downturn during Covid-19 and a resurgence in use in the past two years, buoyed by high gas prices since the 2022 Russian invasion of Ukraine.
Social cost of carbon reaches almost $300/t when climate impact on human welfare considered -study
The social cost of carbon (SCC) is being significantly under-estimated as current calculations fail to adequately consider how climate change could affect human welfare, with implications for policy making, a new study has found.
AVIATION
CORSIA futures jump in wake of carbon credit auction
Futures for Phase 1 of CORSIA, the UN’s international aviation offsetting scheme, have jumped higher in the wake of reported results from a credit auction coming to light this week.
EMEA
EU gives green light to €3 billion French scheme to decarbonise EU ETS industries
The European Commission gave France the go-ahead on Wednesday to disburse €3 billion of state aid in support of decarbonisation efforts from industries covered by the EU’s Emissions Trading Scheme (EU ETS).
French asset manager seeks investors for €500-mln nature fund
A large private investment house is seeking investors for its €500 million nature-based solutions fund, which will finance carbon project development, and is on the cusp of finalising €50 mln from the European Investment Bank (EIB).
‘Not blackmail’: France puts prerequisites on support for 90% EU climate goal
Agreement on a 2040 climate target at EU level must be preceded by an “action plan” outlining the means of achieving the objective, including the principle of technology neutrality to make room for nuclear power alongside renewables, French energy minister Agnes Pannier-Runacher said on Tuesday.
INTERVIEW: CCS is back, but EU policies may be setting it up to fail
The Net Zero Industry Act risks setting the CCUS industry up for failure if the European Commission does not step up to integrate the value chain and regulate CO2 transport, said Rachael Moore, founder of consultancy CarbStrat, in an interview with Carbon Pulse.
Germany cuts power sector emissions by 9% as energy use hits record low in 2024 -report
Germany’s energy sector CO2 emissions fell to 188 million tonnes in 2024, a 9% decrease from 2023 and 60% below 1990 levels, according to a new report released on Wednesday.
ETF holdings slump in 2024 as investors flee EUAs for better-performing assets
Exchange-traded fund holdings of EUA futures have fallen to their lowest in more than three years as an 18-month long slump in prices has driven investors away in search of better returns in other markets, despite forecasts pointing towards a strong rally in carbon starting in 2026.
Euro Markets: EUAs edge higher in narrow range as link to natural gas market stretches
European carbon allowances advanced modestly on Wednesday, loosening their correlation with natural gas prices for a second day as the market accustomed itself to the new front-December contract, while weekly positioning data from the futures exchanges showed speculative traders trimming their bullish bets.
ESMA proposes simplified transparency rules for EU carbon allowance trading
The European Securities and Markets Authority (ESMA) has proposed simplifying the transparency regime for EU Allowances under its final report on amendments to MiFIR Regulatory Technical Standards (RTS 2).
Zimbabwe launches carbon market framework aligned with Article 6
Zimbabwe has launched a national carbon market framework that aligns national policy with Article 6 of the Paris Agreement, multiple local media sources reported on Wednesday.
Eastern EU set to benefit most from clean tech exports, World Bank says
Poland, Romania, Croatia, and Bulgaria have the potential to at least triple clean technology exports, strengthening the EU’s economy at a time of mounting worries over the bloc’s deteriorating competitiveness, the World Bank said on Thursday.
AMERICAS
Peru court demands land titling, nullified concessions in one of most-credited REDD carbon projects
A judge in the San Martin region of Peru has ruled against several government agencies and an NGO developer that manages one of the world’s biggest historical issuers of REDD credits, in favour of Indigenous peoples, ordering the state to apply land titles to ancestral lands, nullify some forest concessions, and conduct community consultations with benefit-sharing.
EPA grants California authority to implement 100% zero-emission vehicle sales rule by 2035
The US EPA granted California authority on Wednesday to adopt the state’s Advanced Clean Cars II regulations for light-duty vehicles, effectively banning the sale of new gasoline vehicles by 2035, amid threats of repeal under the forthcoming Trump administration.
White House releases policy guidance to reduce deforestation-linked imports
The Biden administration released guidance Tuesday to encourage policies that reduce imports of commodities and products driving illegal deforestation.
US agencies fail to meet federal ZEV fleet targets, watchdog says
Under a federal mandate to acquire 100% zero-emission vehicles (ZEVs) by 2035, 11 US government agencies have not met their interim targets, a watchdog study published Tuesday said, with future prospects largely outside of the agencies’ control.
US DOE loan office should suspend financing pending reform -watchdog
The US DOE’s loan office should suspend all loan and loan guarantee packages until it can ensure that its contracts are in compliance with conflict-of-interest regulations, a report published Tuesday by the agency’s watchdog said.
BRIEFING: California watchdog delays annual report draft to align member views
California’s carbon market watchdog postponed its draft 2024 annual report to early January to integrate committee input, as a Wednesday meeting heard divergent views on laguage related to offsets and carbon management.
ASIA PACIFIC
Inclusion of cement will balloon China ETS size, but only add marginal demand, analysts say
Bringing the cement sector into China’s emissions trading scheme will see the total amount of CO2 regulated by the market grow by over a billion tonnes of CO2, but only lead to a minor increase in emissions, analysts have predicted.
Australian oversight body consults on coal mine waste gas method
Australia’s carbon market oversight body has launched a consultation on whether the coal mine waste gas method still meets its offset integrity standards (OIS) and whether it should be remade when it is due to expire in March next year.
Australia Market Roundup: Gas companies secure offshore CCS assessment permits, regulator mints 500k ACCUs
Several Australian companies were awarded offshore GHG assessment permits Wednesday as part of the process to potentially begin work on offshore carbon capture and storage (CCS) projects.
EY report estimates surplus NZUs at 22% lower than govt assessment
The number of surplus units in New Zealand’s emissions trading scheme is around 22% lower than government figures suggest,though regulators should be cautious about adjusting ETS auction volumes based on this finding, according to consultants EY.
Pakistan, Bahamas join call to end use of fossil fuels
Pakistan has become the first South Asian nation to commit to discussions with the Fossil Fuel Non-Proliferation Treaty initiative even as Bahamas has joined the bloc negotiating the winding down of fossil fuel production, a statement released Wednesday said.
VOLUNTARY
Verra releases provisional allocated deforestation risk maps for revamped REDD methodologies
The international carbon standard released Wednesday provisional versions of allocated deforestation risks maps for three Brazilian states within recently revamped REDD methodologies under its Verified Carbon Standard (VCS).
BIODIVERSITY (FREE TO READ)
All our nature and biodiversity articles remain free to read (no subscription required). However, we now 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.
Deep shifts in tackling biodiversity crisis can unlock business opportunities in the trillions, report finds
Fundamental shifts in how the world deals with the biodiversity crisis are urgently needed to halt and reverse nature loss, and could generate over $10 trillion in business opportunity value if implemented immediately, according to a report released Wednesday by the Intergovernmental Platform on Biodiversity and Ecosystem Services (IPBES).
New study could ‘lay the groundwork’ for biodiversity credit markets, author says
A soon-to-be-released method has proven effective in detecting hundreds of species in the Amazon combining AI and remote devices, with researchers planning to implement it globally in a way that could support science-based nature markets, the project leader told Carbon Pulse.
INTERVIEW: French biodiversity credit scheme risks incentivising offsetting over impact avoidance
The voluntary biodiversity credit scheme announced in France could incentivise offsetting over the reduction and avoidance of impacts on nature, as the underlying rules have raised serious doubts over their effectiveness in recent years, a biodiversity consultant has told Carbon Pulse.
COMMENT
ECOSYSTEM MARKETPLACE: Paris-aligned permanence does not require eternity
This blog argues that while permanent removals are essential, Paris-aligned mitigation requires massive carbon removals now, which only nature can deliver.
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ADVERTISING BROCHURE
Carbon Pulse has published its 2025 advertising brochure and media pack, featuring updated offerings and prices. With that, bookings are now open for advertising on our website and in our newsletters next year.
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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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BITE-SIZED UPDATES FROM AROUND THE WORLD
INTERNATIONAL
Form a queue – The UNFCCC has released on Wednesday new forms related to the transition requests from the CDM and methodologies under Article 6.4. These include a request for review of transition request of CDM programme of activities to Article 6.4 mechanism form and a new baseline and monitoring methodology or methodological tool proposal form.
EMEA
Tight market – The UK’s grid operator has warned of a tight power market for the first time this winter, Bloomberg reports. It briefly issued its first warning this heating season earlier this week that there wasn’t enough buffer between predicted supply and demand. The notice period, that was set to begin at 4:30 Monday, was canceled within a few hours. On Sunday, UK day-ahead power prices for Monday jumped to their highest since Dec. 2023. Wind generation is volatile and forecast to fall below 3 GW on Monday, according to Bloomberg’s model, though is expected to rise to a high of over 13 GW on Tuesday. The UK also closed its last coal-fired power plant at the end of September under its net zero ambitions.
Spotlight on Ofgem – The UK government is making steps to repair the country’s retail energy market with a review of energy regulator Ofgem, it said in a release early Thursday. The review aims to strengthen the energy regulator to support consumers and protect households from poor service, and make sure it continues to support growth and innovation in the energy sector. There will be a strong focus on complaints resolution, helping people pay bills, and reducing energy costs. It will also investigate improving access to automatic compensation when companies are guilty of wrongdoing, the release stated.
CCS ventures – Law firm Norton Rose Fulbright has advised energy company Equinor on two of the UK’s first carbon capture and storage (CCS) projects, it said in a release Wednesday. These are Equinor’s participation in the Northern Endurance Partnership (NEP) carbon transportation & storage joint venture with BP and TotalEnergies, and its joint venture with BP to build Net Zero Teesside Power (NZT Power), the UK’s first gas-fired power plant with integrated carbon capture. The two ventures reached financial close last week. NEP should commence construction in mid-2025, and is expected to transport and store up to 4 mln tonnes of capture carbon emissions initially, each year, rising to an average of up to 23 mln tonnes by 2035, with further expansion of the East Coast Cluster. NZT Power, also located in Teesside and part of the East Coast Cluster, will generate up to 725 MW of decarbonised power, with capacity to capture up to 2 mln tonnes of CO2 per year.
Festive appeal – Among requests asked of Barclays in leaflets left by protesters outside its Canary Wharf tower in the past 18 months are calls to implement a policy to halt all forms of oil, gas, and coal financing, scaling up funding for clean energy, and publishing a credible transition plan. Barclays has attracted particular public outrage for the volume of its lending to fossil fuels. The bank arranged $14.7 bln of fossil-fuel bonds and loans in 2024, which while less than half the $35 bln underwritten by New York-based JPMorgan Chase & Co., is more than the $8.5 bln arranged by HSBC, the next biggest European player, Bloomberg data show. Barclays did announce plans earlier this year to halt the direct financing of new oil and gas, but alongside major lenders like Citigroup has made clear it will only support the clean energy transition if it makes economic sense to do so. (Bloomberg)
Misleading ads – The UK’s Advertising Standards Authority (ASA) has ruled on a challenge made by Adfree Cities against ads for Lloyds Bank, including LinkedIn posts about nature recovery projects and renewables investment, which said the ads were misleading because they omitted significant information about the bank’s contribution to CO2 and GHG emissions. ASA concluded that one of the ads, pertaining to renewable energy investment, must not appear again in the form complained of as it omitted significant information, which put the claims into context for consumers. For this one, it failed to mention the proportion of Lloyd’s business activities covered by low-carbon activities. ASA pointed out that Lloyd’s financed emissions in 2022 stood at 32.8 mln tonnes of CO2 equivalent, which represented a large contribution to GHG emissions, and was material information that should have been presented to consumers.
Subsidy spree – The European Commission has opened an in-depth investigation to assess whether public support that Poland plans to grant for a nuclear power plant in Lubiatowo-Kopalino is in line with EU State aid rules. In Sep. 2024, Poland notified the Commission of its plan to support state-owned company PEJ in the construction of a new nuclear power plant in Lubiatowo-Kopalino. The new plant, with an electricity generation capacity of up to 3750 MW, is scheduled to start operating in the second half of 2030. The total investment costs of the project are estimated to be approximately €45 bln. The plant would increase security of electricity supply for Poland and for neighbouring countries, helping the decarbonisation of the energy sector and diversifying the Polish energy mix, the EU statement read. Poland plans to support this investment through: an equity injection of approximately €14 bln covering 30% of the project’s costs; state guarantees covering 100% of debt taken by PEJ to finance the investment project; and a two-way contract for difference CfD providing revenue stability over the entire lifetime of the power plant of 60 years.
ASIA PACIFIC
Changing hands – Australian energy company Woodside has agreed to swap several of its Western Australian assets with Chevron, it said in an ASX announcement. Woodside will acquire Chevron’s interest in the North West Shelf (NWS) LNG project, the NWS Oil project, and the Angel Carbon Capture and Storage (CCS) project. In turn. Woodside will transfer all of its interest in both the Wheatstone LNG project and the Julimar-Brunello gas fields to Chevron – which will also pay up to A$400 mln ($248 mln) in cash to Woodside. Woodside said the transaction streamlined its portfolio, simplifies the NWS joint venture ownership, and strengthens near-term cash flow. The company’s increased equity in the Angel CCS project also supports development of a large-scale, multi-user CCS hub in Western Australia, CEO Meg O’Neill said in the release. The NWS is awaiting federal sign off to have its life extended to 2070, after the WA state government gave it the tick last week.
J-Credit Partnership – Tokyo Gas has signed an agreement to create some 200,000 J-Credits annually with Creatura via using their IT systems, the gas company said. The two will work to expand the creation of J-Credits in areas like energy conservation, fuel conversion, and solar power generation. They will also collaborate in the natural capital sector, a joint statement on Wednesday said.
Up in air – Cathay Pacific Airways has settled 50,000 carbon credits, set to be cancelled under its voluntary offsetting programme for passengers, on the Hong Kong exchange (HKEX), the parties announced Wednesday. Cathay Pacific is one of several airlines in the region that has introduced such a programme in recent years, and chose to settle the deal on the HKEX Core Carbon marketplace, which has seen only moderate volumes after its 2022 launch.
SAF take off – Air New Zealand announced its largest purchase of sustainable aviation fuel (SAF), totalling 30 mln litres, from Singapore-based Neste. The airline said in an announcement the purchase represents 1.6% of the airline’s total fuel supply for FY25, meaning it will reach its SAF target for the year, and is more than four times the volume of SAF the airline used the previous year. The fuel will be uplifted from Los Angeles and San Francisco through to Feb. 2026. Air NZ is targeting using 10% SAF by 2030.
Winds of change – New Zealand has progressed legislation to develop an offshore wind industry in the country, the government announced. Energy Minister Simeon Brown said the Offshore Renewable Energy Bill passed its first reading in parliament, and that he has directed officials to begin drafting the regulations required under the bill to accelerate its implementation. The bill introduces two dedicated renewable energy permits – feasibility permits and commercial permits. Brown said he expected the regulatory regime would be in place by mid-2025 and a first round of feasibility permits will be open for applications by late 2025. The legislation will now go through the Select Committee process.
Biofuel partnership – Indian biofuel major TruAlt Bioenergy has signed a Memorandum of Understanding (MoU) with Japan’s Sumitomo Corporation to develop a bioenergy business across India. The partnership will aim to explore projects across biogas and compressed biogas (CBG), first- and second-generation ethanol, sustainable aviation fuel (SAF), and biochemicals derived from the sugar value chain. The companies will also explore initiatives around carbon credit projects, they announced.
AMERICAS
Save the dams – Ontario announced on Wednesday a $75 million initiative to upgrade and prolong the operational life of 10 dams throughout the province. This investment aims to enhance water management, improve infrastructure safety, and bolster community resilience against flooding and drought risks, according to Ontario’s Ministry of Natural Resources.
Funding notice – The US DOE’s Office of Clean Energy Demonstrations opened applications on Tuesday for $1.3 billion in funding for carbon capture, utilization, and storage (CCUS) technologies. This initiative, initially announced in September, aims to support up to 11 projects focused on commercial-scale demonstrations, large-scale pilots, and shared CO2 infrastructure. Applications are due by July 1, 2025 for projects fostering technological innovation, cost reduction, and broader adoption of CCUS across industrial and energy sectors.
LCFS repeal – Senate Minority Leader Brian Jones (R) this month introduced Senate Bill 2 (SB 2) to repeal amendments to the Low Carbon Fuel Standard (LCFS) that was approved in November. In his announcement, Jones cited a recent study that signalled an increase in gas prices of up to 65 cents per gallon (17.7 cents per litre). Meanwhile, regulator ARB has called its own modelling of a 47-cent rise in retail gas prices due to LCFS an overestimate of programme impact. A statewide petition against the LCFS due to its alleged effect on gas prices circulated by members of the Senate Republican Caucus garnered almost 13,000 signatures in just one week, according to the announcement.
Fast-tracking fast charging – New York Governor Kathy Hochul announced on Wednesday an additional investment of $28.5 million to expand the network of fast-charging stations for electric vehicles across the state. This initiative is part of New York’s broader efforts to promote clean transportation and reduce greenhouse gas emissions, making EV travel more accessible along major routes.
RGGI payments – Virginia Governor Glenn Youngkin proposal to create a $127 million Disaster Assistance Fund to support recovery from Hurricane Helene. The one-time funding will include $102 million from the state’s final Regional Greenhouse Gas Initiative (RGGI) proceeds from 2023. The Virginia Air Pollution Control Board had voted to rescind RGGI rules and withdraw the state from the Northeast carbon market at the end of 2023, although a state county circuit judge ruled last month that the action was unlawful “and thereby null and void”.
VOLUNTARY
Biochar site – Belgian water utility company Aquafin has launched a tender for a pyrolysis-based biochar production facility to be installed at its Menen site in Antwerp. The energy-neutral system will process 5,000 tonnes of dewatered sludge annually, converting it into biochar and heat. The project aims to reduce costly sludge transport and disposal while enabling energy and resource recovery, according to the tender announcement. The facility will feature an integrated dryer and operate as a closed-loop system. Heat generated from the process could be used in a local district heating network, while the biochar may be valorised for construction materials or as activated carbon.
Nature project verification – Verra has released criteria for validation/verification bodies (VVBs) to assess projects against the rules and requirements of the Nature Framework, v1.0, a new asset methodology under the Sustainable Development Verified Impact Standard (SD VISta) Programme. The Nature Framework, launched in Oct. 2024, aims to incentivise widespread investment in measurable conservation and restoration activities benefiting nature and people. The standards body aims to establish a pool of qualified VVBs who can audit Nature Framework projects, the first of which will pursue validation and registration beginning April 1, 2025. More details here.
AVIATION
Aviation offsets – A ruling made on a legal dispute between the German Environmental Aid (DUH) and the Lufthansa subsidiary Eurowings carries consequences not only for Eurowings, but could also have far-reaching effects on the advertising practices of the entire Lufthansa Group. The Cologne Higher Regional Court confirmed the lower court’s decision that Eurowings’ advertising on CO2 compensation was misleading and prohibited the company from continuing to advertise with phrases such as “CO2-neutral travel… offset now and take off”. The court said the impression that a flight’s CO2 emissions would be offset before departure is misleading to consumers as in reality, the actual offsetting only takes place at a later date. It said consumers should have been given more information about the timing and uncertainties surrounding the compensating. The decision sets an important precedent regarding the transparency of advertising promises in aviation. It’s likely to dampen the attractiveness of compensation offers and make it more difficult for the airline to expand offset programmes more widely, with far-reach consequences for offsetting in aviation. (Aviation Direct)
Aviation labels – Today, the EU Commission adopted a regulation putting in place a Flight Emissions Label (FEL), which offers a clear and trustworthy methodology for calculating flight emissions. Airlines operating flights within the EU or departing from the EU will be able to voluntarily join this label, which will be fully operational as of July 2025. By the beginning of next summer, passengers will be able to view and compare the estimated GHG emissions of their flights, enabling them to make more informed purchasing decisions.
AND FINALLY…
Suckier and stronger – Scientists at Nanyang Technological University (NTU) in Singapore have developed a 3D concrete printing method that incorporates and stores CO2, offering a potential solution to reduce the construction industry’s carbon footprint. Cement production, responsible for 8% of global CO2 emissions, is targeted by this method, which uses steam and CO2 — by-products of industrial processes — during the printing process. The method enhances the mechanical properties of concrete, making it up to 36.8% stronger in compression and 45.3% stronger in bending compared to conventional 3D printed concrete. It also improves printability and absorbs 38% more CO2. CO2 reacts with concrete components to become a solid, locking the gas within the structure, while steam enhances absorption. Future research will focus on optimising efficiency and exploring the use of waste gases instead of pure CO2. A US patent has been filed for the innovation. (Science Daily)
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