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TOP STORY

EU lawmakers call for a 2040 climate strategy as some look to international credit use, removals

The EU will need a proper strategy to reach increasingly ambitious climate targets in the decade after this, according to members of the European Parliament’s environment committee (ENVI) in a preliminary exchange about setting the bloc’s 2040 emissions goal on the road to reaching net zero by mid-century.

INTERNATIONAL

Climate cooperation could redefine US-China relationship -Kerry

The US and China should use climate cooperation to redefine their troubled diplomatic relationship, US climate envoy John Kerry on Tuesday told top Chinese officials as part of his three-day visit to Beijing, as the world’s two largest greenhouse gas emitters are resuming stalled talks on more rapid action to tackle climate change.

Securities regulators outline recommendations for expanding, strengthening compliance carbon markets

A global group of securities regulators has published a final report summarising responses to a recent consultation, supporting the establishment and enhancement of compliance carbon markets across its member jurisdictions.

ASIA PACIFIC

China releases ETS rules to clarify permit carryover and borrowing issues

China’s environment ministry has published supplementary rules for participants in the national carbon market for the current compliance period (2021-22), providing more clarity on how companies can tackle their surplus allowances.

Vietnam PM orders forest carbon credit management directive

Prime Minister Pham Minh Chinh has tasked two ministries with drawing up appropriate frameworks for carbon credit management, including a directive specifically addressing rules for trading forestry credits.

Australia to begin accepting new ACCU method proposals from 2024, official says

The Australian government will begin to accept expressions of interest (EOIs) for new methodologies under the Australian Carbon Credit Unit (ACCU) scheme from next year, and will soon consult on its new process for receiving, scrutinising, and approving them, a government official told a conference Tuesday.

The Nature Conservancy to scale up Asia-Pacific nature-based solutions

Global non-profit The Nature Conservancy (TNC) has opened offices in Singapore with plans to hire at least 20 staff members in order to roll out nature-based projects and activities across the Asia-Pacific region to address climate change and biodiversity loss.

VOLUNTARY

Carbon ratings agency raises $57 mln in new funding round, eyes US expansion

A carbon credit ratings agency has raised $57 million in Series B funding to expand its team and support growth in the US, the firm announced Tuesday.

Startup investor partners with advisory firm to expand into soil carbon

A startup investment company is planning a rapid expansion into the soil carbon market after striking a partnership with an advisory firm with the aim of generating 250,000 carbon credits by the end of the year from 100,000 hectares of agricultural land.

Euro Markets: EUAs jump late in the day to 2-week high amid gas rally sparked by supply worries

European carbon jumped to a two-week high in the final hour of trading on Tuesday, driven by a sharp rally in gas prices after what had been a relatively calm day that saw a prominent hedge fund manager reveal he was positioned for a sharp decline in prices.

Carbon-negative hydrogen producer secures €25 mln investment

An emissions-free methane pyrolysis technology firm has secured a €25 million investment from a group of investors to help it launch commercial-scale, carbon-negative hydrogen production.

EMEA

Green groups wary as Serbia releases patchy, weaker draft energy and climate plan

Green groups have criticised Serbia’s draft national energy and climate plan (NECP) for not planning for carbon neutrality for 2050 and putting forward a less ambitious renewable energy goal than in previous publicly announced commitments.

Zimbabwe-hosted carbon exchange in U-turn over accepting banned Russian credits

A Zimbabwe-hosted carbon exchange has reversed course on accepting a Belarusian contribution of banned Russian credits to kick off trade, announcing that only African units will be allowed on the platform.

AMERICAS

French insurance subsidiary buys $49 mln stake in Brazilian reforestation projects

The alternative investment arm of a French insurance firm is committing $49 million to Amazon rainforest reforestation projects that aim to restore Brazilian lands degraded from agriculture.

BIODIVERSITY (FREE TO READ)

INTERVIEW: Start-up begins fair trade biodiversity credit pre-sales

A US-based start-up working with Indigenous small farmers in the Amazon on conservation initiatives has begun pre-sales of its fair trade biodiversity credits, while expecting its indicator species biodiversity methodology to earn its first market standard certification by October.

New $50 mln fund established to protect national parks in developing countries

A US non-profit has launched a $50 million fund that will focus on protecting endangered national parks in developing countries in a bid to help meet UN goals on biodiversity and climate.

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BITE-SIZED UPDATES FROM AROUND THE WORLD

Carbon Pulse has teamed up with CME Group to provide its clients with regular updates on the global carbon markets. Check out these briefs for the latest insights on pressing trends and events impacting markets, published every other week. Registration required

INTERNATIONAL

CELAG, CELAG run – The first EU-CELAG summit in eight years ended in Brussels with the 50+ EU and Latin American and Caribbean leaders agreeing to meet every two years from now on. The two-day talks saw EU institutions sign a slew of clean energy deals within a wider €45 bln commitment to the CELAC region. The summit’s 41-paragraph declaration was agreed by all nations bar Nicaragua, which objected to the par expressing concern about the war “against” Ukraine. The document reaffirmed UN climate and biodiversity commitments albeit with explicit mention of the “principle of equity and common but differentiated responsibilities and respective capabilities, in the light of different national circumstances” that distinguishes the action of richer and poorer nations.

It’s a deal – Qatar’s Ministry of Environment and Climate Change is working with the Mitsubishi Research Institute on an advisory study project for a carbon credits plan. This partnership was announced during a reception for the Japanese PM Fumio Kishida in Doha. The initiative supports Qatar’s commitment to the Paris Agreement, aiming to establish carbon credit exchange systems and reduce emissions. This plan aligns with Qatar’s National Action Plan for Climate Change, which targets a 25% reduction in GHG emissions by 2030.

EMEA

Cap the rich – Capping the energy use of the top 20% of consumers across 27 European countries could cut emissions from home energy use by 11%, those from transport by 17% and those from total energy consumption by 10%, according to a study published in the journal Nature. By contrast, increasing consumption from low energy users in poverty reduces these savings by only 1.2, 0.9 and 1.4 percentage points, respectively, according to the results. The authors say that cutting energy demand across Europe in an “equitable” way could “make an important contribution to increasing public acceptance of such transformative action. (Carbon Brief)

Green mining – The EU will include the mining of critical raw materials in its green taxonomy investment rulebook as a “priority” to ensure the bloc isn’t left behind on resources needed to boost clean technologies, Bloomberg reported, risking further criticism after previous inclusions such as gas and nuclear drew fire. EU financial services commissioner Mairead McGuinness did not put a timeline on when the Commission might propose incorporating mining or detail what kind of criteria might be used.

ASIA PACIFIC

Cleaning up – The world’s largest LNG buyers, South Korea’s Kogas and Japan’s Jera, on Tuesday announced the launch of the Coalition for LNG Emission Abatement toward Net-zero (CLEAN), an initiative to reduce methane emissions in the LNG value chain. They will work with the governments of Japan and the US as well as Japan’s Organisation for Metals and Energy Security (Jogmec) to increase the visibility of methane emissions through dialogue with LNG producers, and to develop best practices in reducing them.

Greener steel – Japan’s Itochu Corporation has signed a four-party MOU with land developer Abu Dhabi Ports Group (ADPG) and major steelmakers in the two countries to build a supply chain for low-carbon reduced iron, it announced Tuesday. The Tokyo-listed firm said it aims to secure a project area and build a stable logistics system for purchasing raw materials and shipping products through the collaboration. JFE Steel and Emirates Steel Arkan are also part of the alliance.

Declined – Australia’s big banks have turned their backs on the country’s largest pure-play coal miner, Whitehaven Coal, refusing to refinance A$1 bln debt, the Nine Newspapers report. Whitehaven revealed its funding problems in a quarterly update on Monday, saying it has managed to source credit for mine rehabilitation, clean-up costs, port, rail and other activities, but could not to get the finance facility renewed.  The banks’ decision not to back the company’s thermal mines – where the most polluting form of coal is dug up to generate electricity in power stations – means Whitehaven will need to retain large amounts of cash on its balance sheet to operate the business while it looks for other loan sources.

Urgent call – South Korean President Yoon Suk Yeol has called for an overhaul of the country’s disaster response system to better cope with climate change-induced crises after days of torrential rains unleashed devastating floods and landslides that killed dozens of people, according to Reuters. “Climate change is causing extreme natural disasters … We cannot respond to this unprecedented abnormal weather the way we have been doing until now,” Yoon said, adding that the country should have a digital system to simulate and monitor precipitation forecasts that will enable officials to take preemptive safety measures.

AMERICAS

Flaming Phoenix – North America’s heat wave has hit Phoenix, Arizona especially hard and is breaking electricity use records as a result, The Arizona Republic reported Monday. Utilities Salt River Project and Arizona Public Service delivered 7,798 and 8,191 MW respectively on July 15, surpassing the all time peak usage set at this time last year. July 15 marked the 16th consecutive day of temperatures above 43C (110F) in Phoenix. Tuesday again marking 19 days above that level of heat in Phoenix, surpassing a record set in 1974 when the city experienced 18 consecutive days above 43C (110F).

Hot damn – A warmer, drier world could complicate efforts to eliminate carbon emissions from electricity generation in the Western US, according to analysis from Stanford University. Based on weather, generation and emissions data from 2001-21, extreme drought conditions can significantly increase carbon emissions from gas- and coal-fired power plants brought online to cope with losses from underperforming hydroelectric plants, according to the study. The interconnected nature of Western utilities means many of these emissions occur outside the region directly impacted by any given drought; excess mortality and other costs associated with these drought-induced emissions could be 1.2-2.5 times higher than the reported direct economic costs from lost hydropower generation, the study says. The excess emissions triggered by drought will become even more important as the West decarbonises. In some years, emissions from fossil fuel plants brought back online to cope with drought could account for 50% of emissions associated with energy production in the region. (Utility Dive)

Amaz(on)ing First – E-commerce multinational Amazon reported a 0.4% year-on-year decline in annual 2022 emissions to 71.27 MtCO2e, for the first time since disclosures began four years ago, and a 7% YoY decline in its carbon intensity, or emissions per dollar of sales, in the company’s annual sustainability report, CNBC reported Tuesday. Even as the firm’s carbon intensity has dropped 24% since 2019, emissions are still up 40% from 2019. Amazon’s Scope 2 emissions from electricity use dropped 29% YoY in 2022 as the company recently became the world’s largest corporate buyer of renewable energy, while Scope 3 emissions, including indirect sources such as building construction and third-party transportation, fell 0.7% YoY after three consecutive years of increases, the report noted. With a 2040 net zero carbon pledge, Amazon has said it would update its supply chain standards to require suppliers to regularly share their carbon emissions data and set emissions reductions goals starting next year. Earlier in May, the company retracted their “Shipment Zero” pledge to make half of all shipments net-zero by 2030, deciding instead to unify all aspects of the business under the 2040 climate pledge, the report noted.

VOLUNTARY

Convening agenda – The US Commodity Futures Trading Commission (CFTC) has released the agenda for the second voluntary carbon markets convening, to be held on Wednesday July 19 at the agency’s headquarters in Washington DC. The convening is open to the public to attend in person, by webcast at CFTC.gov, and by telephone. The purpose of the meeting is to discuss current trends and developments in the cash and derivatives markets for carbon credits, public sector initiatives related to carbon markets, recent private sector initiatives for high quality carbon credits, and market participants’ perspectives on how the CFTC can promote integrity for “high-quality” carbon credit derivatives. See the agenda with participants listed here.

Carbon foodprint – Dynamify, a food tech start-up, has collaborated with Klimato, a sustainability software expert, to launch the UK’s first digital carbon labelling system for the catering sector. This system aids clients, including leading contract catering firms and Fortune Global 500 companies, in tracking and managing their carbon emissions. The initiative has already led to up to 16% reduction in emissions within a year, aiming for a 30% reduction by 2025. Dynamify’s digital ordering platform, when combined with Klimato’s tool, allows businesses to oversee their Scope 3 emissions, covering various aspects like agriculture, transport, and waste. The system highlights carbon-intensive areas, helping companies optimize operations and promote carbon-conscious choices among consumers. Klimato, based in Stockholm and established in 2018, has assisted over 3,000 restaurants in multiple countries to reduce their carbon footprint by an average of 10.9% annually, surpassing the UN’s recommendation of 7.6%.

Biochar-lifornia – California-based startup Sitos Group will introduce a pilot biochar production plant as part of its advanced carbon removal technology with ReGen Monterey. This plant will heat wood byproducts in a low-oxygen environment to produce biochar, a charcoal-like substance that can store carbon and enhance soil health on local farms. When blended with compost and used on farmland, biochar acts like coral reefs, providing a reservoir for vital nutrients, microorganisms, and water, which is particularly important in drought-ridden California. The project, situated at ReGen Monterey’s facility, aims to repurpose excess forestry byproducts and targets the removal of 1 Mt of CO2 from the atmosphere by 2030. (Waste Advantage)

Helping it grow – Irish forestry management software company Treemetrics is contributing to a €9 mln EU project called SINTETIC, aimed at developing a system for the full traceability of wood products to combat deforestation. The platform is being created under the EU directive on deforestation-free products, which requires companies to guarantee their products are not contributing to deforestation. The traceability process will involve using radio frequency identification to tag standing trees and round wood, which will then be coded and scanned at sawmills before being marked with a bar or QR code for the final retail product. The project’s ambition is to increase active management of EU forested areas, reduce transportation costs and related greenhouse gas emissions by 5%, and increase the yield of high-value sawn wood products. (Business Plus)

AVIATION/SHIPPING

You’re gonna need a bigger boat (decarbonisation target) – A new analysis by climate campaigners Transport & Environment (T&E) suggests that the EU’s green shipping law, FuelEU Maritime, is insufficiently ambitious to achieve the bloc’s decarbonisation goals. Despite the law being the most ambitious of its kind globally, T&E’s review indicates that European shipping will still rely on fossil fuels for 75% of its energy needs by 2040, and the sector is likely to overshoot global heating targets. Currently, the law mandates 2% green e-fuels by 2034, 6% by 2035, and 24% by 2040. T&E argues that to effectively decarbonise the sector, the targets should be 18% by 2035 and 85% by 2040, coupled with rigorous energy efficiency measures.

In case of unforeseen emissions – Insurance company AXA XL has launched a new Excess Emissions Insurance product in the UK to assist marine clients in managing their carbon footprints and contributing towards carbon neutrality. Developed in collaboration with ClimateSeed, the product extends AXA XL’s existing marine hull insurance to cover a ship’s carbon emissions should an unexpected extended journey, resulting from a covered risk, cause additional emissions. In such cases, the policy provides voluntary carbon credits equal to the amount of excess emissions produced. The initiative is part of AXA XL’s broader efforts to support clients in achieving net zero targets, through the work of its newly formed in-house carbon team.

Welcome to the future – A new shipbroking firm, Futureships, has been launched with offices in Hong Kong and London, targeting commercial shipping services within the decarbonisation sector. The company specialises in high-performing vessels and older ships retrofitted with energy-efficient technologies or designs for potential alternative fuels, focusing primarily on the dry bulk sector. Futureships provides time chartering services for spot and period charters and plans to offer voyage chartering services in the future. The firm, led by industry veteran Ross Fothergill, aims to facilitate collaboration between ship owners and charterers to meet upcoming environmental regulations. (Splash 247)

AND FINALLY…

The ice vest cometh – After 64 hours, 34 minutes, and 17 seconds of racing, the men’s Tour de France is the closest in memory with just 10 seconds (0.004%) separating the top two riders as the race enters its third and final week. The real victor, however, is already clear, Bloomberg reports: the ice vest. Cyclists in this year’s Tour are employing wearable ice to stave off heat exhaustion as temperatures in Southern Europe soar above 100F (38C). Most participants have been seen wearing vests filled with ice to keep their core temperatures down during the race and warm-up sessions. Ice vests became a feature in competitive sports during the 1996 Summer Olympics in Atlanta. In the current extreme heat, other methods to keep cool include consuming cold beverages, wearing sleeves filled with a frozen gel-like substance, splashing cold water on their wrists, and pressing ice-filled pantyhose against their necks. The effects of climate change have made Europe the fastest-warming inhabited continent, leading to questions about the future scheduling of the Tour de France. (Carbon Brief)

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