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TOP STORIES
Carbon credits with govt authorisation for international trade command 80% premium -analysts
Voluntary carbon credits with a letter of authorisation (LoA) for international transfer under Article 6 of the Paris Agreement are commanding an 80% premium, according to analysts.
VCM MONTHLY DATA: Retirements fall short of annual record as issuance boom pushes credit surplus to new heights
The voluntary carbon market (VCM) ended up falling just short of the annual credit retirement volume record in 2024, while a surge in issuances pushed the market’s surplus to new heights.
AMERICAS
Trudeau exit less cause for carbon market concern than impending Canadian election -analysts
Prime Minister Justin Trudeau’s resignation from Canada’s top seat could have little impact on the country’s carbon markets, or the broader clean fuels market, according to a new report by a US-based analytics group.
Alberta TIER December credit prices continue to fall while supply increases
The Alberta Technology Innovation and Emission Reduction (TIER) programme’s spot price continued to fall during the last month of 2024, while supply kept on an upward trajectory, according to a report published Monday.
US House Republican proposes air pollution permitting bill
The new House Energy and Commerce subcommittee chair introduced a bill on Friday targeting changes to the Clean Air Act (CAA) that could reduce permitting barriers for industrial operations.
US Treasury races to finalise clean electricity tax credits before administration change
The US Department of Treasury (DOT) and the Internal Revenue Service (IRS) released on Tuesday final federal guidance on eligibility for income tax credits in the investment and production of clean electricity, days before the start of President-elect Donald Trump’s second term.
USDA appoints members to its VCM advisory council
The US Department of Agriculture (USDA) on Tuesday announced the appointment of over 30 members to an advisory council for a newly established federal programme that helps rural stakeholders participate in the voluntary carbon market (VCM).
California oil and gas company greenlights state’s first CCS project
A California fossil fuel producer announced Monday that it will be moving forward with constructing the state’s first carbon capture and storage (CCS) project in a depleted oil and gas field, despite an unresolved legal challenge from environmental groups aiming to block the initiative.
VOLUNTARY
SBTi appoints new CEO from global consultancy
The Science Based Targets initiative (SBTi) has announced the appointment of a new CEO, who currently serves as partner at a ‘big four’ global consulting firm, and was the founding head of an influential climate advisory group to the UK government.
FEATURE: Protecting wetlands through carbon projects helps preserve key global emissions sink
There is huge potential to scale carbon finance for the protection of wetland ecosystems, which would in turn bring innumerable benefits, from CO2 to absorbing other pollutants, according to experts.
ARR project using ICVCM-approved methodology achieves validation
A reforestation project in Burkina Faso has become the first that is pending registration on the Verra registry to achieve validation under the VM0047 afforestation, reforestation, and revegetation (ARR) methodology, approved for the Integrity Council for the Voluntary Carbon Market’s (ICVCM) Core Carbon Principles (CCP) label.
Blue carbon sequestration potential overestimated by up to 18 times -report
Blue carbon ecosystems (BCEs) such as mangroves, saltmarshes, and seagrass meadows sequester far less carbon than previously claimed, with rates exaggerated by three to 18 times depending on the ecosystem, according to research released this week.
Biochar carbon removal potential hinges on energy use -report
The net carbon removal potential of biochar production varies widely depending on operational practices such as energy efficiency and co-product management, according to a recent analysis by US-based researchers.
Chilean REDD+ programme brings in $5.1 mln via World Bank facility deal
The World Bank has disbursed funds through the Forest Carbon Partnership Facility (FCPF) to Chile for 1.03 million tonnes of CO2 reduced via a REDD+ programme, at a price of $5 per tonne.
EMEA
Emissions trading in Germany generates record revenues in 2024, slow climate progress for ETS2 sectors
Revenues from emissions trading in Germany amounted to a record €18.5 billion in 2024, driven by the country’s domestic scheme, according to government data, but the latest figures also reveal a lack of momentum in reducing greenhouse gas emissions from the buildings and transport fuel sectors.
Gabon to introduce carbon levy for air, maritime transport
Gabon will require air and maritime transport operators to pay a new ecological contribution tied to their carbon emissions, following the adoption of a decree by the Central African country’s government on Sunday.
Rwandan govt eyes carbon market for agroforestry project
The government of Rwanda is readying an agroforestry project to participate in international carbon markets with an aim to incentivise farmers to plant trees and discourage illegal logging in the country, according to local media.
Ash to cash: Researchers warn against offsets-driven fire management strategies in Africa
Efforts to finance conservation in Africa through carbon offset revenues may prioritise fire management regimes to the detriment of biodiversity and local livelihoods, a new study warns.
Carbon removal startup quadrupled turnover, doubled losses in latest financial year
A UK-based enhanced rock weathering startup almost quadrupled turnover while doubling losses in the financial year ending Mar. 2024, amid a rapid expansion that took place ahead of clinching a deal with Microsoft last year.
Euro Markets: EUAs trim losses amid late gas-driven rally after weak first auction
European carbon prices declined for a second day as the first auction of the year cleared at a sizeable discount to the secondary market and saw modest demand, though a late gas-fuelled rally narrowed the day’s losses.
ASIA PACIFIC
AU Market: First ACCU trades see ‘active start’ for 2025, as climate reporting debate heats up
This week saw the first spot trades of Australian Carbon Credit Units (ACCUs) for the new year, all at relatively flat prices, as experts weigh in on the country’s climate reporting laws.
ID Market: 2024 trade a fraction of first-day burst but participants grow to 100
Indonesia’s carbon market closed December with a total of 10,788 tonnes of carbon traded over the year, despite a steep end-of-year downturn, market data showed.
INTERNATIONAL
BECCS power: Countries without net-zero targets can still play big role in climate fight -study
Countries without net-zero targets could play a pivotal role in limiting climate change through the adoption of bioenergy with carbon capture and storage (BECCS), according to a new study
Malaysia signs Article 6.2 agreement with Singapore
Malaysia and Singapore have signed a memorandum of understanding (MoU) for international carbon trading under Article 6.2 of the Paris Agreement, along with a series of deals aimed at promoting economic opportunities for both the nations.
Investors file resolution ahead of Shell annual meeting questioning gas plans
A group of activist and institutional shareholders have filed a resolution against Shell and its gas expansion plans at the oil giant’s upcoming annual general meeting (AGM), a statement by the group said Tuesday.
BIODIVERSITY (FREE TO READ)
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IUCN launches EU-backed biodiversity finance programme in four countries
The International Union for the Conservation of Nature (IUCN) has launched a programme funded by the European Commission to improve biodiversity financing in Belgium, Finland, Luxembourg, and the Netherlands.
Biodiversity Pulse: Tuesday January 7, 2025
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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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.
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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. Coinciding with Abu Dhabi Sustainability Week and kicking off the day after IETA’s MENA Carbon Market Dialogue, we’re bringing together regional and international carbon markets experts to discuss opportunities and risks within MENA. The two-day event will be a must-attend for anyone working in, or wishing to explore, carbon markets in the region. Last chance to register
Carbon Forward Asia – Mar. 4-5, Singapore – Our third annual Asian conference will once again be held in Singapore. Like at our past events, we’re excited to bring together experts from Asia Pacific to talk ASEAN markets, regional opportunities, developments in local and global carbon pricing, and all the topics you need to hear about across a stimulating two days. Register here
North American Carbon World (NACW) – Mar. 25-27, Los Angeles – The annual NACW conference addresses the most pressing issues in climate policy and carbon markets to the largest gathering of climate professionals in North America. NACW 2025 will dive into major new policies and developments that will shape and scale carbon markets and climate solutions with integrity and ambition. In addition to outstanding speakers, discussions, and insights, NACW provides premier networking opportunities with an active and engaged audience of carbon professionals. Join us for the content, community, and connections for successfully navigating the low-carbon landscape and advancing market-based climate solutions. www.nacwconference.com
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Premium job listings
- Assistant Director, Carbon Markets, Asia Society Policy Institute (ASPI) – Washington DC/at Asia Society Centers in US, India, Korea, Japan, Australia, France, or Switzerland
- Senior Program Officer, Carbon Markets, Asia Society Policy Institute (ASPI) – Washington DC/at Asia Society Centers in US, India, Korea, Japan, Australia, France, or Switzerland
See all listings or post a job
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BITE-SIZED UPDATES FROM AROUND THE WORLD
INTERNATIONAL
UN reminder – The United Nations Framework Convention on Climate Change (UNFCCC) secretariat, through a message dated Jan .2, has reminded Parties to the Paris Agreement to express interest in its International Registry for cooperative approaches under Article 6.2. This service is designed for countries without national registries, enabling them to issue and track mitigation outcomes as units. The registry aims to assist developing nations in establishing their own systems, with expressions of interest due by Feb. 15, 2025.
EMEA
Better together – Automakers facing tougher EU 2025 emissions rules are planning to buy carbon credits from electric vehicle companies including Tesla and Polestar to avoid high fines, Reuters reported on Tuesday. Companies with lower EV sales can ‘pool’ their emissions with segment leaders, purchasing emissions credits from other manufacturers to lower their overall averages. Stellantis, Toyota, Ford, Mazda and Subaru are planning to pool their emission with Tesla. Another pool is forming around Germany’s Mercedes with Polestar, Volvo Cars, and Smart. According to Renault CEO Luca De Meo, 2025 rules could cost European car producers some €15 bln.
Not so rosy – Electric car sales fell by 24.7% in Germany in 2024, according to the German federal transport authority KBA. Some 2.8 mln new vehicles were registered in Europe’s largest car market in 2024. Sales of new battery-powered cars plunged. Sales of these were equivalent to a market share of 13.5%. After years of growth, EV sales lost momentum since the withdrawal of government subsidies at the end of 2023.
Balancing act – British consumers are set to spend over £1.8 bln on payments to help manage the power grid in 2025 as maintenance limits how much renewable electricity can move from Scotland to cities in England this year, Bloomberg reports. The rising cost to balance the supply and demand of power represents a challenge to the British government as it seeks to rapidly ramp up the supply of wind energy and also bring down electricity bills for consumers. Even as the share of wind in the UK’s power mix rises, limits of the grid and the structure of Britain’s electricity market mean there are increasing costs to keep the lights on. The data is based on information from the UK’s National Energy System Operator.
ASIA PACIFIC
Project mangroves – Thailand’s Department of Marine and Coastal Resources (DMCR) and Dow Thailand Group are working together on the implementation of the Thailand Mangrove Alliance project, the department has announced. In their recent meeting, the officials discussed setting the conceptual framework, format, and management strategies for the project along with the format of the appointment of the committee to oversee the project. The project, which has a joint implementation timeframe from 2024 to 2030 will oversee operations in four areas including mangrove conservation, conservation of water and wetlands, biodiversity, and carbon credits generation. In addition, the DMCR will be the main agency for coordination with the agencies within the Ministry of Natural Resources and Environment, the statement added.
SME support – The South Korean government’s Environment Corporation has announced it will provide subsidies to small-to-medium enterprises participating the country’s emissions trading scheme. A total of 19.5 bln won ($13.5 mln) has been committed to the support scheme, according to a government announcement. Applications for the subsidies close at 1600 on Feb. 14.
Santos fined – An Australian oil and gas company has been fined just under A$10,000 ($6,300) for an oil spill that polluted the local environment, the Western Australian government said this week. Santos also paid A$9,700 in court costs and pleaded guilty in the Karratha Magistrates Court. The 2022 condensate spill of 25,000 litres occurred at Varanus Island, one of the company’s production hubs that supplies gas into the state gas market, and exports the light oil to Asia. The government said the pipelines that carried the condensate were not operated in a properly “workmanlike” manner. Activists have decried what they see as a paltry fee. Local press and environmental groups allege dolphins and sea snakes were killed by the spill but the government did not bring this contention to court.
New GH2 tech closer – Hydrogen hopeful Sparc Technologies told the Australian Securities Exchange (ASX) Tuesday it and partners had taken the next step towards building a demonstration plant for its novel method of making green hydrogen. The startup, which grew out of work at the University of Adelaide, is backed by mining giant Fortescue, which has vast green hydrogen ambitions, though has shelved some projects in recent years owing to higher costs. Front-end engineering and design (FEED) is expected to begin early this year. Sparc’s selling point is that its novel technology does not require electrolysers to make hydrogen from water, nor the large-scale renewable energy to power said electrolysers. Both are expensive. Instead, it uses a form of photo-catalysis.
SAF first for SK – SK Energy has become the first South Korean refiner to export sustainable aviation fuel (SAF) to Europe after beginning commercial production of the clean commodity four months ago, it said this week. It plans to take advantage of new EU rules mandating 2% SAF usage. It makes SAF from used cooking oil and animal fats, both of which are becoming increasingly in demand. It plans to soon be producing 100,000 tonnes a year of SAF.
AMERICAS
Securities fraud – US federal prosecutors have reportedly charged Ibrahim AlHusseini, a venture capitalist known for investing in climate technologies and donating heavily to Democratic causes, with securities fraud, according to The Daily Wire. The FBI alleges that AlHusseini falsified financial documents in a $150 mln investment deal involving California-based Aspiration, a progressive banking and carbon offsets company. Investors reportedly lost $150 mln, while AlHusseini allegedly transferred $300 mln to Saudi Arabia to evade debts. AlHusseini was allegedly arrested in Oct. 2023 and released on $3 mln bail, backed by wealthy liberal activists and environmentalists. Prosecutors are said to have claimed that he provided fraudulent bank statements suggesting assets worth up to $200 mln. He is accused of gaining $12 mln through false promises in a deal involving Aspiration stock and a defaulted loan by another Aspiration co-founder, Joe Sanberg. Aspiration, co-founded by former Clinton aide Andrei Cherny and backed by high-profile figures like Leonardo DiCaprio, has faced accusations of greenwashing and financial misrepresentation and is under investigation by US authorities including the DOJ and SEC. Reports suggest inflated customer numbers, dubious carbon offset claims, and questionable revenue sources as Aspiration pursued a $2-bln valuation for its business, which included offering a debit card aimed at sustainable shopping. Former executives have suggested poor internal controls and possible misconduct in revenue reporting. The company’s auditors, KPMG, withdrew without approving financial reports, and its tree planting partner, Eden Reforestation Projects, has sued it for unpaid expenses.
CFTC chair resigns – Rostin Behnam, chair of the US Commodity Futures Trading Commission (CFTC), will step down on Jan. 20, 2025, Reuters reported. During his four-year tenure at the CFTC, Behnam oversaw significant actions, including finalising federal guidelines for carbon offset trading and encouraging stronger oversight of the digital asset industry. In a statement to Financial Times, Behnam advocated for a disciplined approach to crypto regulation, urging his successor to ensure that clearer lines are drawn regarding what is permissible in the industry. Behnam’s departure comes as President-elect Donald Trump prepares to appoint a new CFTC chair and push for more crypto-supportive regulations.
EV charging charges on – The Biden administration’s $7.5 bln programme to build a nationwide EV-charging network is progressing, with nearly 60% of the funds already obligated, E&E reported. Gabe Klein, head of the Joint Office of Energy and Transportation, expressed confidence that the programme could potentially continue under a Trump administration, citing strong bipartisan support across states. Despite Republican criticisms about slow progress, the pace of charger construction is increasing, with 25,000 chargers currently in development.
Another exit – Echoing moves by other US banking giants, JPMorgan is withdrawing from the Net Zero Banking Alliance (NZBA), Reuters reported Tuesday. This marks the sixth departure by a major bank from the group in the space of a month. Other recent exits include Citigroup, Bank of America, Morgan Stanley, Goldman Sachs, and Wells Fargo. NZBA is part of the Glasgow Financial Alliance for Net Zero (GFANZ), which was launched ahead of COP26 to align global standards and practices for net-zero commitments. JPMorgan provided no clear reason for leaving the initiative, but its pullout comes after months of pressure from some Republican politicians who said membership of such coalitions could breach anti-trust rules.
Court forces climate review – The Montana Supreme Court has ordered a climate review of power producer NorthWestern Energy’s Yellowstone County Generating Station, citing inadequate assessment by the state’s Department of Environmental Quality (DEQ). The decision builds on the landmark Held vs Montana case, which affirmed the need to evaluate climate impacts in state permitting processes. While the ruling enforces climate considerations, it stops short of revoking the plant’s permit, leaving unresolved questions about the decision’s enforcement. (E&E)
ExxonMobil vs environmentalists – ExxonMobil sued California Attorney General Rob Bonta, the Sierra Club, and other environmental groups on Monday, claiming they defamed the company over its plastic recycling practices. The lawsuit was launched in response to Bonta’s accusation that Exxon misled the public by promoting single-use plastics as recyclable, contributing to plastic waste. In the suit, ExxonMobil denied the claims, stating that the defendants engaged in “reverse greenwashing” and publicly attacked the company with “false accusations”. ExxonMobil seeks an undisclosed number of monetary damages, in addition to retractions from the defendants. The legal battle is part of broader ongoing tensions between oil companies and environmental groups over climate change, with ExxonMobil also naming Intergenerational Environment Justice Fund Ltd, an Australian charity, as part of the suit.
Catch a waiver – The EPA has partially approved California’s request for amendments to its Commercial Harbor Craft (CHC) regulations, which aim to reduce emissions from harbour craft operating in the state. The 2022 amendments introduce new emission standards for various vessel categories and implement Zero-Emission and Advanced Technology (ZEAT) requirements for ferries and excursion vessels starting in Dec. 2024. The EPA granted authorisation for most of the amendments but withheld decisions on specific provisions, including ZEAT standards for in-use short-run ferries and certain feasibility-related standards for existing engines. The latest approval follows a number of waivers granted to California in recent weeks ahead of the upcoming Trump administration.
Dominica powers ahead – Dominica has secured a $34.8 mln loan from the Caribbean Development Bank to fund a 10MW geothermal plant in Laudat. Estimated to generate up to 50 times its current energy demand, the project aims to enhance energy security, reduce electricity costs, and cut carbon emissions across the country. The project, expected to begin construction in 2025, marks a shift from Dominica’s reliance on imported fossil fuels, which currently power most of its electrical grid. (Power Engineering International)
VOLUNTARY
Removal partners – Carbon management platform Carbon Direct has partnered with Sumitomo Corporation to accelerate the Japanese and global markets for carbon removal, according to a LinkedIn post Tuesday. The goal is to build a robust portfolio of high-durability removal projects, aiming to bring more than 500,000 tonnes per year of high-durability direct air capture and storage (DACCS), bioenergy carbon capture and storage (BECCS), and biochar carbon removal (BiCRS) online.
Biochar postdoc – South Africa’s Stellenbosch University has announced a postdoctoral fellowship in biochar business models and socioeconomic impacts, aiming to advance research on biochar’s role in climate change mitigation. Funded by the Cluster of Excellence for Nature-Based Solutions and Horizon Europe’s MarginUp project, the fellowship will assess feedstock costs, carbon credit eligibility, and market potential, with a focus on biomass from invasive alien trees. The position, based in the university town of Stellenbosch, offers a tax-free stipend of $20,000-25,000 and requires a PhD obtained in the last five years. Applicants will conduct field research, publish findings, and explore biochar’s viability for scaling carbon removal in South Africa and beyond.
AND FINALLY…
Bank on coral – A growing body of research shows that coral reefs in the US protect $1.8 bln in economic assets every year, Grist reported Monday. In the right location — close to shore, or near the water line — a reef provides a speed bump for waves and storms, dissipating their energy. However, no one had ever precisely quantified the benefit of this until eight years ago, when Curt Storlazzi, a research geologist with the US Geological Survey, and Mike Beck, a marine scientist then employed by The Nature Conservancy, began examining their economic impact with a group of researchers. The team found that the nation’s reefs spare about 18,000 people and $1.8 bln in economic assets from floods each year. They argue that if coral reefs are effectively high-performance seawalls, they should be maintained and strengthened with federal disaster funds — which are significantly larger than conservation budgets.
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