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TOP STORY
ICAO estimates 100-150 mln carbon credits needed for CORSIA Phase 1
UN aviation agency ICAO has calculated that CORSIA offsetting requirements for 2024-26 emissions will reach between 100-150 million tonnes, while the total for the 2024-35 period could hit as high as 1.5 bln tonnes.
EMEA
EU teases metals industry with announced changes to CBAM for exports
Steel and aluminium producers have welcomed announced changes to the EU’s Carbon Border Adjustment Mechanism (CBAM) to deal with exports, and called on policymakers to move swiftly into gear in order to protect Europe’s industry.
RWE cuts clean energy spending by €10 bln citing US risks
German energy giant RWE has slashed its green spending by €10 billion over the next five years, citing regulatory uncertainties and increased risks – particularly in the US where President Trump ordered an immediate freeze on permits for new wind energy projects.
UK govt confirms “actively considering” ETS link with EU in formal response to speculation
The UK government formally confirmed it is considering the case for linking the country’s carbon market to the EU ETS in an update published late on Thursday, but cautioned that this does not anticipate any outcome of key talks in May with the bloc.
UKA futures prices to end 2024 up 23% year-on-year, ahead of anticipated shortfall -analysts
UK carbon prices are likely to end the year around 23% higher when the current front-December contract expires on Dec. 15, but are expected to advance more strongly in 2026 as the market surplus turns in to a shortfall, analysts told a webinar on Wednesday.
Equinor sticks with net zero target, as investor divests away
Equinor says it is sticking to its goal of achieving net zero carbon intensity across its direct and indirect emissions, despite a decision last month to ease off its capital expenditure and targets for renewable energy, according to the Norwegian oil and gas giant’s updated energy transition plan.
Brussels sets out oil and gas industry’s contribution to EU’s CO2 storage target, leaves key threshold blank
The European Commission published draft legislation on Wednesday setting out rules for oil and gas producers who are legally obliged to contribute to an EU-wide target of CO2 storage capacity under the bloc’s Net Zero Industry Act (NZIA).
Soil carbon at risk in European agriculture land, EU research shows
Soil organic carbon is at risk in large parts of European and UK agricultural land, and any further loss would negatively impact the EU’s climate change mitigation efforts and food security, a study by the European Commission’s Joint Research Centre has warned.
US stalls $2.6 bln climate finance package to South Africa -media
The US is planning to hold up the distribution of $2.6 billion in climate finance to South Africa, raising concerns that the entire funding could be held back, Bloomberg reported Thursday.
Flexible electricity demand to surge in Europe amid renewable push, finds report
Flexibility to turn electricity grid power on and off will need to increase fivefold in major European countries in the run up to 2030 amid a ramp up of renewable supply, an energy consultancy has found.
Euro Markets: EUAs ease lower amid profit-taking and consolidation, with selling interest seen rising
European carbon prices handed back some of Wednesday’s 3% gain on Thursday amid what some sources said was profit taking, magnified by the weakest auction of the year to date, while energy markets also drifted on further reports that Germany and France are seeking to relax gas storage mandates from 2026.
European Commission to release EU ETS verified emissions data for 2024 on Apr. 4
The European Commission will release preliminary 2024 verified emissions figures for the EU ETS on Apr. 4, it announced Thursday.
AMERICAS
Bolivia seeks to sell $1.2 bln carbon securities from protection of forests
Bolivia plans to issue $1.2 billion of sovereign carbon securities on or before April 15, a company working on the sale told Carbon Pulse.
Mexican state’s bamboo could generate $170 per hectare annually from VCM -study
A Mexican state that has pioneered bamboo plantations could glean around $170 per cultivated hectare, according to a study published Wednesday by a national research institute.
FEATURE: Trump casts US hydrogen hubs into uncertainty as funding clarity remains elusive
The seven US clean hydrogen hubs awarded billions of dollars under former President Joe Biden are now facing an uncertain future as the administration of President Donald Trump pauses clean hydrogen support, potentially impairing a nascent clean energy industry.
Affordability concerns weigh on Washington’s considerations to tighten WCFS
A bill that aims to tighten the carbon intensity (CI) reduction targets under the Washington Clean Fuel Standard (WCFS) drew opposition at Wednesday’s public hearing over affordability concerns, while proponents stressed the need for broader market alignment.
WCI Markets: CCAs retreat amidst ARB uncertainty, WCA market tightens
California Carbon Allowance (CCA) prices slipped from an early week bump as the market once again faced rulemaking delay-induced uncertainty, while Washington Carbon Allowances (WCAs) rose amidst ongoing tightness, traders said.
US House Democrat sets sights on EPA-enforced ETS for power plants, industry
A Democratic lawmaker has turned to Congress to legislate a cap-and-trade scheme for power generators and large industrial CO2 emitters to reduce emissions, even as the US EPA rescinds environmental regulations of the prior administrations.
Overlapping federal laws could hinder US marine-based CDR development -report
A new analysis outlines potential US legal frameworks for marine-based CO2 removal (mCDR) projects, arguing that while existing liability laws could hinder development, alternative environmental liability regimes could provide clearer legal pathways.
Western Canada’s first hydrogen liquefaction plant awarded nearly C$50 mln
The Vancouver-based hydrogen supplier developing the British Columbia-Alberta heavy-duty transportation hydrogen network has won another influx of federal cash for its next plant.
Alberta bill demands provincial control over emissions data
Alberta proposed an amendment to existing law that would restrict the federal government from collecting emissions data of oil and gas facilities.
ASIA PACIFIC
ANALYSIS: JCM supply outlook clouded by project development uncertainties, despite solid demand
Japan has pledged to utilise the bilateral Joint Crediting Mechanism (JCM) for its climate ambitions, but the lengthy project development process and changes in the international institutional environment have raised doubts over the programme’s ability to generate a sufficient amount of credits, according to observers.
Australia launches new A$70 mln industrial decarbonisation funding round
The Australian Renewable Energy Agency (ARENA) has opened a second round of funding to support industrial decarbonisation valued at A$70 million ($44 mln).
Vietnam to develop voluntary carbon labelling for emissions-heavy exports
Vietnam’s Department of Climate Change (DCC) under the new Ministry of Agriculture and Environment (MAE) is working to design voluntary carbon accounting programmes and labelling for emissions-heavy businesses that export to Europe and the US.
Carbon tax will fail Pakistan unless restructured to value adaptation, judge says
For a country such as Pakistan, battered by the impacts of climate change, policies like carbon markets and taxes will fail the nation unless adapted to local realities, a Supreme Court judge told an event this week.
US, Japanese firms partner to boost carbon accounting and offsetting in Asia Pacific
A Japanese carbon accounting firm and a US-based carbon investment manager have partnered to provide companies in the Asia Pacific region with tools to monitor their carbon footprint, implement mitigation strategies, and invest in carbon offset projects.
Korea to fund international emissions reduction projects
South Korea has put out its annual call for proposals that could advance the development of international emissions reduction projects.
Taiwan adds soil carbon methodology to domestic voluntary scheme
Taiwan’s environment ministry on Thursday approved a methodology that aims to create carbon sinks through soil management activities, expanding the number of domestically developed nature-based offset methodologies to five.
INTERNATIONAL
INTERVIEW: Corporates exposed to carbon taxes more interested in buying Article 6 credits, developer says
There is an increasing demand for Article 6 credits from the private sector, especially from individual companies that are exposed to carbon taxes, a California-headquartered developer told Carbon Pulse.
Economic pain of delaying net zero will outweigh costs of acting now -research
Governments and businesses that delay the transition to a net zero economy could face severe economic disruptions, including inflation spikes, financial instability, and long-term downturns in growth, according to a new study.
Rating agency assigns weak score to first approved PACM carbon project
A carbon rating agency has assigned a relatively low score to the first approved project that has transitioned to the new Paris Agreement Crediting Mechanism (PACM) from the Kyoto-era Clean Development Mechanism (CDM).
VOLUNTARY
SBTi plans for removals may cause more harm than good for CDR industry, webinar hears
More harm than good could result from the proposal by the Science Based Target initiative (SBTi) to allow companies to use carbon dioxide removal (CDR) credits to meet their hard-to-abate residual Scope 1 emission targets, a webinar heard Thursday.
BRIEFING: Carbon capture, a costly distraction to some, is the “revolutionary” answer to others
Depending on who you ask, carbon capture and storage (CCS) is either a decades-long failure and distraction from real emissions cuts, or the only viable solution for decarbonising hard-to-abate sectors like cement, and petrochemicals.
Auditable, transparent AI models could unlock market confidence in carbon credits -panellists
With a large amount of data available on projects generating carbon credits, AI could be deployed to inform buyers and to build market confidence, as long as it enhances data integrity, panellists said on a webinar hosted by the IETA on Thursday.
Accountancy organisations urge broader climate disclosure standards to prevent greenwashing
The International Public Sector Accounting Standards Board (IPSASB) should expand the scope of its proposed climate-related disclosure requirements, warn chartered accountancy bodies, who argue that the current approach risks greenwashing.
CDR certifier Puro.earth reaches 1 mln credit issuance mark after burst of interest in 2024
Carbon dioxide removal (CDR) certifier and platform Puro.earth has reached a milestone of issuing more than 1 million removal credits (CORCs) since its first issuance in 2019.
Insurers partner with insurance-tech startup to support CDR projects
A trio of insurers have agreed to provide capacity for an early-stage carbon credit delivery insurance product to support the CO2 removals (CDR) market.
Verra appoints new chair to board of directors
Verra has appointed a new chair to its board of directors amid a shake-up in the company, the standard body announced Thursday.
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.
FEATURE: EU regulations driving US business action on nature
EU regulations are gradually encouraging US companies to act on nature despite impacts of the Trump administration, although progress lags behind Europe, according to experts.
INTERVIEW: Public development banks key to steering biodiversity credit markets
Public development banks (PDBs) should contribute to steering the emerging biodiversity credit markets, as giving free rein to the private sector could lead to unwanted consequences, according to an official at the French Development Agency (AFD).
Mining council publishes net gain biodiversity guidance
The International Council on Mining and Metals (ICMM) published guidance on Thursday that aims to help mining companies ultimately achieve net gain or no net loss of biodiversity.
UK road authority pitches £240-mln budget for biodiversity net gain, carbon credits
The UK’s road agency has proposed a budget of up to £240 million for public sector spending on biodiversity net gain (BNG) and carbon credits.
Biodiversity Pulse: Thursday March 20, 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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NEW REPORT
How offtake agreements are shaping the future of biochar: Long-term offtake agreements are transforming the biochar carbon removal market — securing supply, stabilizing prices, and providing financial certainty. Supercritical’s latest report, Locked in or Left Behind?, explores key shifts in procurement strategies and what they mean for the future of carbon removal. With 62% of high-quality biochar credits for 2025 already committed and prices rising 18% in 2024, securing an offtake could be the key to guaranteeing supply and price stability.
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EVENTS
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
European Climate Summit – Apr. 1-3, Lisbon – To kick off our Annual Regional Climate Summit Series of this year, we at IETA look forward to welcoming delegates this Spring to our flagship European Climate Summit (ECS) 2025, taking place at the Pavilhao Carlos Lopes. ECS will take place amid a rapidly changing geopolitical landscape, even as carbon markets in the EU and globally continue to mature and expand. A new political cycle for EU climate action has begun, and the task of preparing carbon markets for their next stage presents both new challenges and opportunities. In this dynamic context, competitiveness, integrity, and innovation will be at the heart of our discussion. Be part of the conversation driving the next phase of carbon market evolution. Join us at ECS to engage with policymakers, business leaders, and climate market pioneers who are shaping the future of carbon markets. Organised by IETA, ECS is an in-person event. Register
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BITE-SIZED UPDATES FROM AROUND THE WORLD
INTERNATIONAL
Step up efforts – UN Secretary-General António Guterres has said that the Paris Agreement goal of 1.5C is still achievable despite the alarming rise in extreme weather events, atmospheric CO2 concentrations, and record warming, and has called on world leaders to step up their efforts in response to the crisis. Referencing the WMO’s State of the Global Climate report, he said “our planet is issuing more distress signals – but this report shows that limiting long-term global temperature rise to 1.5C is still possible”. “Leaders must step up to make it happen –seizing the benefits of cheap, clean renewables for their people and economies – with new national climate plans due this year,’’ he urged. We’re making progress but need to go further and faster, he said. Record-breaking global temperatures in 2023 and 2024 were primarily driven by increasing GHG emissions, amplified by the transition from La Niña to El Niño, the WMO report found. Other contributing factors may have been solar cycle variation, volcanic activity, and changes in ocean circulation. Other key findings included: each of the past 10 years being individually the 10 warmest years on record, and last year ocean heat content reaching its highest level in the 65-year observational record.
Slowing growth – The Organization for Economic Co-operation and Development (OECD) warns that geopolitical and political uncertainty, as well as further trade fragmentation, could lead global economic growth to slow to 3.1% this year. That could slow further in 2026 to 3%, with significant differences between countries and regions. The previous forecast predicted global economic growth of 3.3% over the next two years. GDP growth in the US is projected at 2.2% this year, and is expected to slow to 1.6% in 2026. The organization forecasts the eurozone economy to grow by 1% in 2025 and 1.2% – in 2026. While China’s growth this year will slow from 4.8% to 4.4% in 2026. The global economy has proven to be resilient, with growth staying stable and inflation moving downward, but there are still signs of weakness caused by heightened political uncertainty, warned the OECD. To counteract the decline in production, the institution calls for structural reforms to increase productivity and promote the launch of new technologies by strengthening market competition and eliminating excessive regulatory burdens on companies.
No oil at COP30 – A group of 260 NGOs from around the world on Tuesday published a letter calling for an end to the influence of fossil fuel lobbyists at UN climate conferences. The document is addressed to the Brazilian government, the COP30 presidency, and the UNFCCC. The letter calls for fossil fuel lobbyists not to be accredited to the COP within national delegations as guests, asking for conference participants to be subject to “robust” filters to avoid potential conflicts of interest. In the text, NGOs including Climate Action Network International, Greenpeace, WWF, and others state that the inclusion of oil representatives has delayed a fossil fuel phase-out, compromised the agenda to reduce GHG emissions, and eroded protections for affected communities. In an apparent allusion to the last three COP host countries – petrostates Egypt (COP27), the UAE (COP28), and Azerbaijan (COP29) – the NGOs also ask that only countries demonstrating “tangible progress in implementing the Paris Agreement, national climate action plans and commitment to human rights” be chosen as COP hosts. (Reset)
EMEA
Onboarding in progress – Kenya has submitted its Instrument of Accession to become the newest member of Seoul-headquartered Global Green Growth Institute (GGGI) in an effort to advance sustainable economic development. GGGI has ongoing operations in Kenya, including the implementation of a green hydrogen project funded by Korea’s Ministry of Economy and Finance. The East African nation joins existing Member States, alongside Angola, Burkina Faso, Cote d’Ivoire, Ethiopia, Rwanda, Senegal, Togo, Uganda, and Zambia. The full membership is scheduled to be confirmed on Apr. 18, 2025.
Solar hospitals and schools – The UK’s new state-run energy developer, Great British Energy, will put solar panels on about 200 schools and 200 NHS healthcare sites in England, saving hundreds of millions of pounds, it announced on Friday. In its first major project since it was created by the Labour government last year, Great British Energy will invest £200 mln and begin work immediately, with the aim of having the first panels in operation by the end of the summer, it said. Around £100 mln will cover about a third of NHS trusts, and £80 mln will go to schools. Leftover energy could go back into the grid.
Floating wind leader – Britain could become an exporter of floating wind farms to the rest of the world, said Dan McGrail, interim CEO of GB Energy, who is reportedly considering investing some of his £8.3 bln budget in the technologies to boost energy generation. Almost all UK offshore wind farms are currently attached to the seabed, but there are strong hopes for floating turbines in deeper waters, with the government recently allocating £55.7 mln to expand a Scottish port and enable it to become the first in the country to produce floating offshore wind turbines at scale. (The Times)
More flexibility please – Germany and France are among those pushing to reduce the EU’s headline target for filling gas storage over the next two years, Bloomberg reported. The objective is to ensure inventories are 90% full by Nov. 1 to provide the region with energy security through a cold winter, but some nations complain the goal’s rigidity feeds into market speculation as traders anticipate purchases before the deadline. Countries including the Netherlands, Slovakia, and Hungary are pushing for an additional 10% flexibility, which would effectively lower the pre-winter threshold to 80%, people familiar say. Now Germany and France are adding to the call for greater flexibility. The talks are part of a proposed extension to the storage filling rules through 2027. However, the commission is currently unwilling to accept any weakening of the overall goal, which it deems as essential for energy security, the people say.
Climate activism – Climate activist Follow This is calling for investors in BP to vote against the reappointment of Chairman Helge Lund at next month’s annual general meeting, in a sign of opposition to the company’s recent pivot back toward oil and gas. Addressing fellow investors in a letter Thursday, Follow This urged them to protest against the company’s decision to change its clean-energy strategy without first seeking shareholder approval. The annual meeting is scheduled for Apr. 17. In late February, BP drastically cut its expenditure in clean energy to just $1.5-2 bln a year, over $5 bln per annum lower than previous guidance. (Bloomberg)
ASIA PACIFIC
Instrumental – Australia’s Clean Energy Regulator (CER) has seen its Audit Thresholds Instrument 2025 come into effect, it announced to stakeholders Thursday. The instrument was consulted on earlier this year, and replaces the 2015 instrument. The CER said it had received 23 completed submissions that overall expressed audits in the ACCU Scheme strike the right balance between ensuring integrity and supporting participation. The only change was to create a new audit category for low risk environmental plantings projects that was previously signposted.
More money – PT PLN Indonesia Power, one of the largest power generators in the country, has sold 39,265 tonnes’ worth of emissions reduction certificates via IDX Carbon as of Mar. 17, its president director, Edwin Nugraha Putra, told national news agency Antara this week. The power company, in addition to supporting the 2060 net zero target, is also trading GHG emission reduction certificates to expand its business outside of electricity sales, he added. Meanwhile, Indonesia plans to include nine industrial sub-sectors in carbon trading activities scheduled to begin in 2027, a minister announced this week.
More trouble – New Zealand’s competition regulator is investigating whether banks’ membership in the Net-Zero Banking Alliance (NZBA) breaches anti-cartel laws, as per local media. The Commerce Commission is probing concerns that climate commitments, including those required by the NZBA, may restrict lending. Federated Farmers filed a complaint in December, alleging “cartel-like behaviour.” The UN’s NZBA has been in trouble lately due to widespread exits, which forced the bank to increase its climate target to 2C from 1.5C.
Forest-focused partnership – Osaka-based consultancy Co-Designing Institute for Polyphonic Society has formed a business partnership with Nagoya Bank to encourage sustainable forest management and regional decarbonisation, primarily in the Tokai region, according to a recent company statement. The companies said they would work to promote the local production and consumption of carbon credits, without disclosing a potential project size.
And the award goes to… – The Solar Energy Corporation of India (SECI) has announced the list of green hydrogen producers which can set up production facilities in India. SECI awarded a total annual production capacity of 450,000 tonnes for a maximum allocated incentive of about $260 mln, Mercom reported. The production facilities will have 36 months from the date of issuance of the letter of award to commission the full production capacity. SECI’s goal is to facilitate rapid expansion, advance technology, and reduce production costs of green hydrogen and its derivatives in India.
From Viva to Virgin – Virgin Australia has partnered with one of Australia’s last oil refiners to source sustainable aviation fuel (SAF) for its flights leaving from Proserpine in Queensland from March until July this year. Viva Energy will provide the airline, which is Australia’s second-largest, with SAF made from Jet A1 and a 20-40% synthetic blend made from waste feedstocks. SAF can be ‘dropped in’ to existing aircraft with no modifications but remains expensive to produce.
ERPA alert – Developer Ostrom Climate Solutions announced that it has signed an emission reduction purchase agreement (ERPA) for a climate-smart agriculture project in the Philippines. This project, which involves an unnamed Fortune Global 500 corporation, aims to reduce methane emissions from rice production using the alternate wetting and drying methodology, potentially spanning over 100,000 hectares. No further details were available.
AMERICAS
Crude consequences – Greenpeace has been ordered to pay $667 mln in damages over its protests against an oil pipeline in North Dakota, which could bankrupt its US operations, the non-profit has said. A nine-person jury in Mandan, North Dakota, ruled in favour of Texas-based pipeline operator, Energy Transfer, on Wednesday, finding Greenpeace and its US entities responsible for defamation, conspiracy, and physical damage to its Dakota Access Pipeline. Climate advocacy group 350.org expressed solidarity with Greenpeace, calling the lawsuit an attempt to silence activism and warning that it could set a precedent for legal action against environmental organisations. Greenpeace has said it would appeal against the ruling and has also sued Energy Transfer in the Netherlands in a test of new EU freedom of speech rules. (FT)
Cap in hand – New Canadian Prime Minister Mark Carney will uphold the cap on emissions from oil and gas production, Environment Minister Terry Duguid told The Canadian Press. The policy, introduced under former PM Justin Trudeau, aims to limit emissions without capping production, pushing companies to invest in cleaner technologies. In November, the federal government introduced draft regulations – two years behind schedule – requiring oil and gas producers to cut emissions by about a third over eight years. A proposed cap-and-trade system would allow companies to buy and sell emissions allowances. The policy has faced strong opposition. Alberta Premier Danielle Smith has criticised the regulations as “unrealistic” and has vowed legal action. Federal Conservative Leader Pierre Poilievre has pledged to scrap the emissions cap, as well as the federal output-based pricing system for large industrial emitters, if elected. Industry leaders argue the regulations would discourage investment and threaten jobs. In 2022, oil and gas production and refining accounted for 31% of Canada’s emissions. The new rules would require emissions in the sector to fall to 35% below 2019 levels between 2030 and 2032. A portion of these reductions would come from ongoing efforts to cut methane emissions.
Well woes – Alberta Premier Danielle Smith announced that plans for addressing abandoned and inactive oil wells will be released in two weeks, stating that public funding will not be required. This contradicts a leaked draft government report, which suggests taxpayer-backed companies could acquire abandoned wells and use revenue for cleanup, along with an industry-funded insurance programme supported by the province. Smith acknowledged that allowing companies to produce oil from abandoned wells to fund remediation is under consideration but noted the financial risks involved. She emphasised that no final decisions have been made and welcomed public input on the issue.
Squint to see it – A California lawmaker has proposed changes to the state’s existing carbon management law. AB 881, sponsored by Assem. Cottie Petrie-Norris (D), makes a “nonsubstantive change” to a provision in SB 905 related to double counting, according to legislative filings. The bill text only details an amendment in the language from “utilising” to “using”. However, E&E News has reported that the bill was amended Monday to direct the state fire marshal to develop CO2 pipeline safety regulations and allow the state to lift its pipeline moratorium once in place.
Export expansion – The US DOE has conditionally approved an LNG export authorisation for Venture Global’s CP2 project in Cameron Parish, Louisiana. The order, published Wednesday, addresses regulatory requirements and conditions for the project’s operations, including export destinations and compliance obligations. Energy Secretary Chris Wright stated that the approval aligns with the Trump administration’s goal of expanding American energy exports. CP2, which will export up to 3.96 bln cubic feet of LNG per day, is the third LNG project by Venture Global. A final order is anticipated in the coming months.
Renewable roadmap – Maryland is exploring regulatory options to achieve its 100% clean energy goal for electricity by 2040 while maintaining affordability and resource adequacy, according to a recent analysis. The study—published by Resources for the Future, a non-profit think tank based in Washington, DC—examined three policy frameworks: strengthening the Renewable Portfolio Standard, implementing a Clean Energy Standard to credit all non-emitting generation, and adopting an Emissions Intensity Standard to regulate emissions from in-state and imported power. The analysis projects that stricter compliance payments and early clean energy contracts could drive investment while mitigating future price increases. The study also suggests placing compliance obligations on retail suppliers, with oversight from the Public Service Commission to balance affordability, reliability, and clean energy goals.
Headwinds for LCFS repeal – A piece of California legislation that would repeal amendments to the Low Carbon Fuel Standard (LCFS) failed passage in the state senate’s Committee on Environmental Quality Wednesday. Senate Bill 2 (SB 2), introduced in December by Senate Minority Leader Brian Jones (R), was designed in response to LCFS updates in November that Jones says will drive up retail gas prices. In November, Jones had cited a study from the University of Southern California’s (USC) Marshall School of Business, which said the recently updated regulations could raise retail gasoline prices by up to 89.8 cents per gallon (23.72 cents per litre) in 2025. Although SB 2 failed to pass in its first hearing, the committee voted to allow it to be reconsidered.
VOLUNTARY
Clean cookstove factors – The UN’s Article 6.4 CDM Executive Board has highlighted key areas for further work r.e. calculating the fraction of non-renewable biomass (fNRB) for clean cookstove projects. The board did not approve the default values of the MOFUSS model and has referred the matter back to the Methodological Panel for further review. The panel will seek to address the following in its next meeting: 1) urban fNRB calculations, related to urban fNRB estimation and the localisation of wood harvesting for charcoal production. 2) geographical disaggregation, assessing the optimal level of regional breakdown for fNRB values – considering factors like charcoal supply chains.
Art.6.2 LoA template – The UNFCCC published its voluntary template on Thursday for authorisation of Internationally Transferred Mitigation Outcomes (ITMOs) under Article 6.2 of the Paris Agreement. Viewable here. Carbon Pulse is tracking Article 6.2 agreements on its Article 6 portal.
Filling gaps – Gold Standard, in collaboration with the Thailand Greenhouse Gas Management Organization (TGO), is exploring the possibility of offering dual certification for projects under both the Premium Thailand Voluntary Emission Reduction Program (Premium T-VER) and Gold Standard for the Global Goals (GS4GG). Under this approach, credits issued through Premium T-VER could also meet additional GS4GG requirements and be recognized with a Gold Standard label, it said Thursday. This proposed model builds on Gold Standard’s previous experience offering dual certification for projects registered under the CDM, where such recognition often led to increased buyer interest and higher credit prices, it said. Gold Standard said input is particularly welcomed on potential gaps in the proposed requirements, as well as on the overall appeal of this option for projects participating in Premium T-VER. The consultation is open until Apr. 22.
Orange you glad? – Sao Paulo-headquarted Citrosuco, the world’s largest orange juice producer, will in the coming days approach prospective European buyers to market new carbon credits (AgFeed). It hopes to close deals by the end of this year. The company estimates that it sequesters around 400,000 tCO2 annually in its operations. Initially, Citrosuco is conducting a pilot project on six farms, totalling 20,000 hectares. Contingent upon the success of this initial pilot, the company intends to scale up to 70,000-80,000 hectares, all on its own lands. The credits use a methodology called PSA Carbon Agro Perene, which was launched last September by the company in partnership with Eccon and Reservas Votorantim, a forest management company of the Votorantim Group, after two years of development. Citrosuco is itself controlled by the Votorantim and Fischer groups. Credits under the PSA Carbon Agro Perene methodology are called ‘Carbon Plus’ (C+) credits, and they are intended for application within both the voluntary carbon market and potentially Brazil’s ETS (Portuguese: SBCE), according to Citrosuco ESG Head Orlando Nastri. Eccon and Reservas Votorantim also last year launched a registry together with Singapore-headquartered carbon exchange ACX and Brazil’s B3 stock exchange at the Brazil Climate Summit in New York.
INVESTMENT
VC raise – 2150, the venture arm of private investment firm Urban Partners, has raised €197 mln for its second fund. The fund invests in the ‘urban stack’, ranging from startups developing resilient construction material to those working in electrified transport, and is backed by the Augustinus Foundation in Denmark, Novo Holdings, Danish state-back fund EIFO, and US-based pension fund Church Pension Group. German family office Viessmann Generations Group and Finnish family offices Security Trading Oy and Virala Group are also LPs. 2150 will invest in 20 Series A and B companies out of the fund, with half going to Europe-based startups and half to those in the US, writing cheques of €3 mln-15 mln, with half of the fund kept for follow-on investments. Since Q1 last year, three investments have been made in Metycle, a marketplace for global metal recycling, Mission Zero Technologies, which develops technology to capture CO2, and AtmosZero, a US-based startup developing industrial heat pumps to decarbonise industrial steam. (Sifted)
SCIENCE & TECH
Worrying overestimations – Tesla may be grossly overestimating its avoided emissions impact, according to analysis conducted by carbon accounting platform Greenly. The data team scrutinised the automaker’s claim of avoiding over 20 mln tonnes of CO2 emissions in 2023, casting doubt on the reliability of Tesla’s calculations and exposing potentially inflated assumptions that could undermine its reputation and financial stability. Tesla calculates avoided emissions by comparing the performance of its fleet to internal combustion engine (ICE) vehicles, factoring in vehicle miles traveled, grid emissions, and ICE fuel efficiency. But, Greenly’s model suggests that Tesla’s assumptions—particularly regarding ICE baseline emissions and the carbon intensity of electricity used for charging—may be overly optimistic. For instance, if Tesla underestimated grid emissions or compared its vehicles to older, bigger, or less efficient ICE models, its reported avoided emissions could be significantly overstated. The broader fallout of its emissions data proving unreliable could be considerable, wrote Greenly, as it may allow competitors like Rivian and BYD to capitalize on growing skepticism about Tesla’s transparency, and could even lead to Tesla facing intensified regulatory scrutiny and potential legal action.
AND FINALLY…
Manipulation nation – High-polluting firms are more likely to manipulate earnings to offset climate-related costs, according to a study published earlier this year in the Journal of Applied Accounting Research. The research, which analysed 476 European companies across 17 countries from 2005 to 2018, highlights the financial risks posed by climate regulations such as the European Green Deal and the EU ETS. It suggests that as companies face increasing costs from transitioning to low-carbon operations, they may engage in earnings management to present a stronger financial position. Larger board sizes were found to improve financial transparency and reduce the likelihood of such practices. Despite strict EU regulations, firms continue to manipulate earnings, indicating a need for stronger oversight. Researchers noted that high greenhouse gas emissions could serve as a red flag for financial misrepresentation, reinforcing the need for regulatory scrutiny. The study also suggests that firms may use earnings management to anticipate policy changes amid regulatory uncertainty.
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