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TOP STORY

Verra announces new consultations and research programmes to prepare for scaled-up voluntary carbon market

Standards body Verra announced a suite of new initiatives aimed at building credibility, transparency, and community co-benefits within the voluntary carbon market (VCM), the company announced Sunday.

AMERICAS

Brazil plans return to more stringent 2015 Paris NDC targets, installs ETS working group

A group of government ministers have agreed to revert Brazil’s emissions cuts back to the country’s 2015 Paris pledges, and have set up several working groups to develop a more ambitious plan and implement the country’s Emissions Trading System (SBCE), among other resolutions the environment ministry announced Friday.

RGGI Market: RGAs notch new YtD highs as weather, programme review provide support

RGGI Allowances (RGA) values lifted once again this week to new year-to-date highs and approached all-time records, as market participants pointed to bullish support from the strong Q3 auction performance, weather, and the upcoming Third Program Review meeting.

California’s October cap-and-trade workshop to discuss post-2030 allowance budgets

California regulator ARB on Monday announced the next public workshop date to discuss potential updates to its cap-and-trade programme regulation and mandatory GHG reporting scheme, including in regards to allowance budgets after 2030.

LCFS Market: California prices wilt to 6-mth low as rulemaking timeline continues to weigh

California Low Carbon Fuel Standard (LCFS) credit values on Monday sagged to levels not seen since March, as market participants continued to digest the impact of state regulator ARB’s current timeline for tightening the programme’s carbon intensity (CI) reduction benchmarks.

California sues five oil majors, demanding they pay their ‘fair share’ for climate damage

California is suing five of the world’s largest oil companies, alleging that executives have deceived the public for decades about how fossil fuels have been damaging health and the environment while relying on taxpayers to foot the bill.

ASIA PACIFIC

FEATURE: Where does the world’s smallest molecule fit in industrial decarbonisation?

Australia’s successive federal governments and multiple state governments see green hydrogen as a game changing decarboniser that could also create lucrative new energy export markets, and importantly it is spruiked as a solution to otherwise hard-to-decarbonise areas where electrification may not work.

China releases basic rules for spot power market operation and trading

Chinese regulators have released a set of basic rules for the operation of the country’s spot power market, a step considered essential to transition towards market-based electricity pricing and further support the development of renewable energy, and for improving the effectiveness of the national ETS.

China’s CCER relaunch may come as early as next week, observers say

Some observers are expecting the relaunch of the Chinese Certified Emissions Reduction (CCER) scheme could happen as early as next week, after the government on Friday said it had approved a document essential to get the programme back up and running.

EMEA

EU’s financial watchdog warns offshore wind development poses green ‘dilemma’

The environmental and socioeconomic impacts of the EU’s rapid expansion of offshore wind power installations have not been properly assessed, the bloc’s financial watchdog warned in a report published on Monday.

Euro Markets: EUAs erase short-squeeze gains ahead of September options expiry, while UKAs extend losses

European carbon prices fell for a second day on Monday, unwinding all the gains that the market had realised since last week’s Commitment of Traders report triggered a short squeeze, while energy prices drifted as short-term supply concerns eased.

First Swiss carbon auction for 2023 sells out

Switzerland’s first carbon permit auction for 2023-vintage units has sold out.

Study shines light on hidden potential of Europe’s non-forest trees through advanced satellite imagery

European landscapes hold more to them than meets the eye, with trees outside forested areas playing a significant role in national carbon stocks, biodiversity, and habitat networks, and yet their true value remains largely underappreciated, a new study reveals.

S&P Global hires ex-Goldmans director as new European carbon analyst

A former executive director at Goldman Sachs has joined S&P Global as its new European carbon analyst based in London.

VOLUNTARY

VCM Report: V2018 and V2019 REDD credit prices slide lower

The middle of the REDD avoided deforestation curve, such as credits issued in 2018 and 2019, fell last week although there seemed little movement in older or fresher vintages in the sector.

Carbon portfolio bundle pilot aims to correct VCM legacy over-crediting flaw

A US-based rating agency of voluntary carbon market (VCM) credits has piloted a portfolio product with a carbon investment fund innovator in an attempt to solve for overestimation problems in legacy low-quality offsets, the company announced in a white paper published Monday.

Direct air capture developer to pursue certification with carbon removal platform

A direct air capture (DAC) project developer on Monday announced that it is partnering with a carbon credit registry to achieve certification of its carbon dioxide removal (CDR) services under the latter’s standard.

Carbon credit provider expands network, extends partnership to sustainable aviation alliance

A climate platform and software provider announced its expanded network of partners on Monday, including its first-ever aggregator partnership with a sustainable aviation fuel (SAF) alliance.

INTERNATIONAL

Multinationals join group pushing for target to triple renewables by 2030

A global multi-stakeholder coalition is urging governments to commit to a 2030 target to triple renewable power generating capacity at the year-end COP28 UN climate negotiations.

Civil society groups raise alarm at lack of action on nature and climate

UNFCCC parties must step up their climate and biodiversity commitments and back them up with transparent action, a group of NGOs, businesses, and science organisations have written an open letter, based on new data and urging governments to better integrate negotiations to tackle both global crises.

BIODIVERSITY (FREE TO READ)

Verra releases its long-awaited nature credit standard for public consultation

Carbon credit standard body Verra has launched a public consultation on its SD Vista Nature Framework as it looks to get set in the emerging biodiversity credit market.

Kenya-based outfit set to announce voluntary biodiversity credit transaction next week

As new standards emerge for voluntary biodiversity credits, a project developer in Kenya is shortly to announce its first transaction of biodiversity credits.

Carbon developer sets sights on biodiversity market with new global venture

A carbon project developer launched a global business Monday at New York Climate Week to define social value metrics for nature that aims to be a frontrunner in the biodiversity credit market.

Executives think biodiversity is not businesses’ problem, says research

A think tank released research on Monday that showed a mismatch between executive rhetoric and corporate action on biodiversity within their supply chains, with many executives suggesting the issue is not the responsibility of private companies.

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Job listings this week

• *Senior Technical Specialist, REDD+ and Climate Policy, Fauna & Flora – Liberia
• *EMEA Policy Editor, Carbon Pulse – Brussels/London/Remote (in Europe)
• Carbon Compliance Analyst, Origin – Sydney
• Blue Carbon Officer, The Nature Conservancy – Adelaide
• Policy Advisor, UK ETS, Department for Energy Security & Net Zero – UK (Various Locations)

*Premium listings

Or click here to see all listings

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CONFERENCES

Flowcarbon Carbon Smart Summit – Sep. 19, New York City: Your chance to get up to speed on the fast-changing carbon markets at Climate Week NYC!  Join us for a full-day/in-person event featuring leading experts working at the forefront of the voluntary carbon markets — from project development and finance to key policy initiatives, corporate sustainability and technology trends. Speakers will include: Mark Patel (McKinsey), Kelley Kizzier (Bezos Earth Fund), Mark Kenber (VCMI), Alexia Kelly (High Tide), Judith Simon (Verra), David Antonioli, Zach Scott (Trafigura), Julie Bennett Bunuan (Truist) — and many more. Registration is free. Sign up today at carbonsmart.global

North America Climate Summit – Sep. 19-21, New York City: The International Emissions Trading Association (IETA) looks forward to welcoming delegates to our flagship North America Climate Summit (NACS) 2023, an official accredited event of New York Climate Week 2023 and the UN General Assembly 2023. The Summit is the ideal forum to take stock of the world’s evolving net zero landscape and clean growth opportunities, and a zoom into North America. Hear from policymakers, business leaders and innovators who are leading the pack in building, scaling and collaborating on carbon pricing and markets for net zero. Register here

Carbon Forward 2023 – Oct. 11-13, London: Join us for Europe’s pre-eminent carbon markets conference, covering the EU and UK ETS as well as international voluntary markets and compliance schemes elsewhere in the world. The event brings together attendees from all related sectors, including traders and intermediaries, big emitters, financiers, project developers, analysts, consultants, NGOs, and government representatives. Topics to be covered include carbon pricing regimes globally, investment opportunities, Article 6 cooperation, CBAM, net zero strategies, and de-risking the voluntary carbon markets. Passes are going fast to secure yours today!

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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

AMERICAS

WA lawsuit – The first legal showdown over Washington’s cap-and-trade programme, which went into effect in January, will be Sep. 22 in Thurston County Superior Court. In January, the Citizen Action Defense Fund, a watchdog group that focuses on conservative causes, filed a lawsuit against the state that alleges the legislature crammed multiple subjects into its 2022 transportation bill, including the cap-and-trade programme. The complaint alleges that the bill violates the Washington state constitution by covering more than one subject. In the hearing, the plaintiff will seek a summary judgment from the judge on its lawsuit. The lawsuit has two goals, said Jackson Maynard, executive director for the Citizen Action Defense Fund. One is to hold the line on the constitutional rule that limits a bill to one subject. The second is to halt, at least temporarily, the state’s new cap-and trade programme. The Legislature approved the cap-and-trade bill in 2021, but not until last year’s transportation bill was passed could the Washington Department of Ecology set up regulations to put the program into action. (Crosscut)

Signing off on Scope 3 – California Gov. Gavin Newsom says he will sign a bill that will require large businesses to account for their carbon emissions, including their Scope 3 or supply chain emissions. State lawmakers passed the bill, SB-253, last week, requiring businesses in California that earn over $1 bln a year in revenue to publicly declare their GHG output. The law will make California the first location in the US to require corporate carbon accounting and comes as the Securities and Exchange Commission considers how to regulate corporate climate disclosures. The SEC has so far not said whether it will include Scope 3 emissions, which come from a company’s suppliers and generally are the largest contributor. (CNBC)

Incentives delayed – More than C$50 bln clean tech investments could be at risk if incentives are delayed further, reports Reuters. Several companies have invested in projects after the Canadian government pledged C$27 bln over five years in two sets of investment tax credits (ITCs) to accelerate green technologies. However, neither of the ITCs has been passed yet, and investor groups express concerns that financiers could explore alternative investment opportunities due to the prolonged delay. A finance ministry official reasoned that the consultation process was prolonged because “the government wanted to set the legislation right,” but did not disclose when the first set of ITCs will be passed.

Solar farming – International conglomerate Colgate Palmolive announced on Friday the signing of a 20-year virtual power purchase agreement (VPPA) for a 209MW Markum Solar Farm in the outskirts of Waco, Texas, expected to begin operations in 2025 and supply 100% of the company’s electricity. The new solar farm is being developed by Scout Clean Energy, a portfolio company of Brookfield Asset Management. Renewable energy consultancy 3Degrees advised Colgate on the VPPA agreement. As of Dec. 31, 2022, approximately 52% of the firm’s global electricity consumption was sourced from renewable energy.

EMEA

Scottish shore power – The UK government has awarded £55 mln to the Port of Aberdeen to design and deliver the first large-scale landside and vessel-side shore power system in Scotland, aiming to save more than 60,000 tCO2e. over the next 20 years. The demonstrator project belongs to the Department for Transport’s (DfT) Zero Emissions Vessels and Infrastructure (ZEVI) competition and will pave the way for the roll-out of green shore power across North Harbour, potentially cutting the port’s total emissions by 78%. The new funding will enable the installation of shore power facilities at seven berths, expected to be operational by April 2025 or sooner.

Rural backlash – Concerns from rural communities about the expense of installing heat pumps are a key factor behind considerations to delay a 2026 ban on the installation of oil-fired boilers in the UK, reports the Times. About 1.7 mln off-grid houses in rural communities would be affected by the ban, which is part of the government’s plan to reach net zero emissions by 2050, and is currently facing a backlash from Tory MPs. The proposals would see homeowners no longer able to install oil-fired boilers from that date, leading to a reliance on expensive heat pumps instead. The Countryside Alliance is among organisations to have campaigned against the ban, arguing it would have a disproportionate impact on rural communities.

Climate EU: so male – The EU has a gender balance problem, which the commissioner-designate for climate Wopke Hoekstra can’t solve. That’s why women leaders from around the world sent a letter today to the EU institutions and Dutch prime minister Mark Rutte, urging them to “put climate first and choose the right candidate as lead negotiator for COP28”. Signatories believe that Hoekstra, already largely criticised by environmental groups, “lacks a track record and commitment to climate action”. They pointed out that the Commission also “lacks the gender balance” that the Commission’s president, Ursula von der Leyen, promised at the beginning of her mandate: 12 of the current 27 members of the College are women. “It would improve credibility to appoint one of the many highly competent, qualified women leaders in your midst to offer the requisite leadership on climate action in this final year of the College,” they wrote. “We are leaders and experts from around the world voicing our grave concern about the nominee and urging you to consider the matter far more deeply.”

ASIA PACIFIC

Green light – The Asian Development Bank (ADB) has approved a Maldives-based renewable energy project using the Japan Fund for the Joint Crediting Mechanism (JFJCM), Japan’s environment ministry said in a release. The project, which could cut 4,500 tCO2 annually, will include the introduction of micro-grid technology using flow storage batteries on two selected islands. Japan is currently implementing the JCM schemes with 27 partner countries.

Lego plants 50,000 trees – Lego Group in Vietnam celebrated the planting of 50,000 trees to replace those cut down when building its factory in Binh Duong province. Deputy Prime Minister Le Minh Khai attended the ceremony. The factory first broke ground last November. 

Seismic on hold – Australia’s Woodside Energy has been ordered to halt its 4D seismic survey related to its Scarborough gas field, which it hopes to be exporting as LNG by the middle of the decade. Late last week, the Federal Court upheld an injunction filed by the Environmental Defenders Office (EDO), a law firm. The work had already been approved by the offshore environmental regulator but the EDO claims the gas giant had not adequately consulted with indigenous stakeholders. 

VOLUNTARY

SocGen when? – French bank Societe Generale has announced that it will halve its upstream oil and gas exposure by 2025, in comparison to 2019 levels, up from the 20% reduction it had previously pledged. The bank said it plans to cut its upstream oil and gas exposure by 80% by 2030, as well as shelving its offer of financial products and services dedicated to new oil and gas production field projects at the beginning of 2024. (AFP)

Yannick’s in – Former Green Climate Fund boss Yannick Glemarec has been elected as new Gold Standard Foundation President, and Chair of the Gold Standard Board, taking over from former UN climate chief Yvo de Boer for a four-year term at the helm of the certifier. Glemarec was executive director of the Green Climate Fund from April 2019 to April 2023, having overseen the development and/or management of over 1,000 multilateral climate and development projects and over 100 multi-partner climate and development trust funds in over 140 countries.

SCIENCE & TECH

Record lows – The sea ice surrounding Antarctica is well below any previous recorded winter level, which could have far-reaching consequences for the climate at large due to the important role Antarctica plays in regulating the planet’s temperature, reports the BBC. The bright, white surface of Earth’s fifth-largest continent reflects the sun’s energy back into the atmosphere and also cools the water beneath and near it, so without its cooling impact, Antarctica could change from being Earth’s refrigerator to a radiator, say experts. Ice floating on the Antarctic Ocean’s surface now measures less than 17 mln square kilometers — 1.5 mln sq km less than the Sep. average and well below previous winter records. The missing ice area equates to about five times the size of the British Isles.

AND FINALLY…

Space dream – Japanese chemical manufacturing company Air Water has been working on creating liquid biomethane from cow waste to be used as rocket fuel, which could be a solution for dairy farmers grappling with disposal challenges,  Japan Times reports. The company has been manufacturing liquid biomethane in Hokkaido since 2021, fermenting the dung and urine in a plant constructed on a dairy farm in Taiki before transporting the generated biogas to a factory in Obihiro. Air Water said it would begin conducting trials this fall with the fuel to be loaded on a rocket created by Hokkaido-based space startup Interstellar Technologies.

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