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TOP STORY
Verra goes on the attack after investigation by Guardian, corporate watchdog levels fresh accusations against VCM
Another expose by the Guardian and a corporate accountability NGO has raised further criticisms against the voluntary carbon market, earning a stern rebuke from standards body Verra after claiming that the majority of credits generated from the market’s most prolific projects are “junk” when assessed purely through the lens of emissions reductions.
VOLUNTARY
New carbon standard body for REDD launches with veteran developer as a founding member
A veteran carbon credit project developer has backed a new standards body for the REDD avoided deforestation sector officially launched on Tuesday at New York Climate Week, although more developers are expected to voice support later this week.
LEAF to announce first carbon credit transactions “over next few months”, offer forest nations upfront capital support
Public-private initiative LEAF Coalition expects to announce its first transactions of forestry credits in the coming months, including a pre-payment fund offering supplier nations with upfront capital to help overcome technical challenges in finishing deals, its members said on Tuesday.
Carbon developers in Zimbabwe could negotiate to give less money to local communities, say legal experts
Carbon offset project developers in Zimbabwe may be able to give less money to local communities than stated in the African country’s fresh regulations by negotiating with the Zimbabwe Investment Development Agency, legal opinion has claimed.
Carbon removals framework to address voluntary market development impediments
A coalition of developers and academics on Tuesday published a framework of guidelines for offset suppliers in the carbon removals space to address structural risks that represent barriers to scale at a recent summit.
Voluntary carbon market must be more proactive in countering industry criticism, stakeholders argue
Proponents of the voluntary carbon market (VCM) need to push back against criticisms of the industry more vociferously and refute accusations of poor environmental integrity, an event heard this week.
ACX partners with Greek bourse to create voluntary carbon marketplace
Singapore-headquartered carbon exchange operator ACX has teamed up with Greece’s main bourse to explore the development of a voluntary carbon market in the European country, making a foray into continental Europe, it announced Tuesday.
Major property developer achieves continued emissions reduction, through supplier relationships and innovation
The UK arm of an international property developer has achieved a 32% cut in its carbon footprint since 2019 by collaborating with its supply chain and building in more efficient and innovative ways, it said in a report on Tuesday that detailed actions including the building of a blended portfolio of carbon credits to tackle its residual output.
Fortune Global 500 companies reporting yearly emissions reductions draw in higher profits than those who don’t, says study
Companies reporting year-on-year emissions reductions earn on average nearly $1 billion more in profits than their peers who don’t, while companies with an emissions reduction target of 2030 or sooner also perform better in curbing their operational emissions, according to an annual study to assess the climate commitments of Fortune Global 500 companies.
AMERICAS
US regulatory guidance on voluntary carbon rules coming this year, “cop on the beat” CFTC chair says
US market regulators will by the end of this year publish a consultation to provide guidance for voluntary carbon credit trading, the chair of the Commodity Futures Trading Commission (CFTC) said Tuesday, assuring participants there’s now a “cop on the beat”.
WCI Markets: CCAs reach new YtD high on October cap-and-trade workshop impetus
California Carbon Allowance (CCA) prices briefly spiked to a new year-to-date high in early morning Tuesday trade, spurred by the mere announcement late Monday of the state’s next cap-and-trade rulemaking workshop for its WCI-linked programme.
RGGI states consider full annual compliance surrender, net zero by 2035 in next programme review meeting
The 11 RGGI member states on Tuesday released their next round of proposed updates as part of the ongoing third programme review, including changes to compliance frequency for participants and modelled scenarios that test net zero emissions by 2035 and for the power sector carbon market.
Experts disagree over whether IRA could drive down California LCFS prices
It is uncertain whether the clean fuel tax credits provided by the US Inflation Reduction Act (IRA) will exacerbate the decline in credit values under the California Low Carbon Fuel Standard (LCFS), a conference heard Tuesday.
US EPA watchdog report documents Renewable Fuel Standard fraud, questions market integrity
A US EPA watchdog found instances of fraud, conflicts of interest, and inefficiencies in the production of Renewable Identification Numbers (RINs) as part of the Renewable Fuel Standard (RFS) programme in a report published Tuesday, recommending corrective measures the agency has committed to implement.
Massachusetts September GWSA auction sees significant price decline
Massachusetts’ power sector Global Warming Solutions Act (GWSA) auctions for current as well as future vintages settled at the lowest level since March 2022, while offered volume remained the same as this year’s Q3 sale, according to results published Tuesday.
ASIA PACIFIC
New Zealand emissions on track for historic low -minister
New Zealand is poised to announce its lowest emissions for a century, the country’s climate minister, James Shaw, said on Tuesday.
Soil carbon developer to seek A$30 mln in Series B raise
Australia’s largest soil carbon developer is seeking cash of up to A$30 million ($19.35 mln) via Series B funding so it can grow investment and the scale of its tech platform to better understand how CO2 is stored across a range of soils and projects.
A swifter Asia-Pac net-zero plan will drive regional GDP up, report finds
Several Asia-Pacific economies have yet to see their greenhouse gas emissions peak, but speeding up the decarbonisation process could be a boon for their GDP, according to a report released Tuesday.
Australia Market Roundup: Greens party announces A$10 bln forest protection plan, ACCU issuance rises
The Australian Greens party has unveiled a plan to provide cash to state governments to end the logging of native forests, while at the same time barring their use to generate carbon credits for offsetting purposes for the fossil fuel sector.
Major Southeast Asian credit rating agency to introduce decarbonisation rating system
A major credit rating agency in Southeast Asia has teamed up with two carbon-related service providers to expand its ESG rating capabilities through the introduction of a decarbonisation rating system, it announced Tuesday.
Australian carbon fintech acquires climate change consultancy
An Australian-based fintech company has a acquired a majority stake in a climate change consultancy to capitalise on the strong demand for climate change services, it announced Tuesday.
Pakistani govt weighs Article 6 collaboration with controversial UAE-based carbon firm
Pakistan’s Ministry of Climate Change has held meetings with a contentious UAE-based carbon developer and consultancy to explore how the country’s land sector can generate Article 6 era carbon credits, local media reported.
NZ Market: NZU price slips back amid profit taking
Spot NZUs traded lower on Tuesday as holders likely took profit from the post-auction rally, according to market participants, while the upcoming election continues to loom large.
Japanese trading house, airline throw weight behind blue carbon initiative
One of Japan’s largest trading houses and a major airline have teamed up with a university to explore the potential for mangrove plantations and biodiversity conservation in Kagoshima Prefecture that would generate marine-based carbon credits for the growing domestic carbon market.
EMEA
Amid stalled ETS linking talks, crash in UK carbon price not going unnoticed by EU Commission
Emissions trading scheme linking talks between the EU and UK remain stalled, the European Commission’s top climate official said Tuesday, warning that market signals – namely collapsing UK permit prices – are pointing to increasingly diverging policies.
Euro Markets: EUAs consolidate after hitting 3-month low as market awaits options expiry and COT data
European carbon prices reached a three-month low in early trade on Tuesday before finding support at the same level that it had occupied before last week’s short squeeze began, with modest trading as participants looked ahead to the expiry of the September options contract as well as the weekly Commitment of Traders report on Wednesday.
Smaller shipping companies seen as unprepared for EU ETS entry as emissions rise above pre-pandemic levels
EU shipping companies are facing a major challenge when trying to chart a course to purchasing EU ETS allowances, with some smaller market players still not prepared for the sector’s entry next year as revised data suggests emissions for the sector have already climbed above pre-pandemic levels.
Netherlands to pay RWE €332 million to curb coal power output
The Netherlands intends to pay RWE €331.8 million to compensate the utility for lost income due to the government’s 35% limit on coal power plant operating hours over 2022-24 to help meet climate goals.
Lawmakers seek EU-wide approach for developing small nuclear reactors
EU lawmakers on Tuesday launched a bid to promote the coordinated development of small modular reactors (SMRs) across the 27-nation bloc on Tuesday, believing that the technology can play a significant role in replacing fossil fuels.
INTERNATIONAL
Growing divergence between ambition and reality in global efforts to reach net zero emissions –report
The world needs to be decarbonising at almost seven times the current rate to stay on track to meet the goals of the Paris Agreement, according to research published Wednesday.
Countries make patchy progress on power sector decarbonisation amid signs of hope -analysts
Countries have made mixed progress in decarbonising their power sectors in line with Paris Agreement targets but there are some signs of hope, with finance key to developing countries meeting fossil fuel phase-out targets, according to research published on Tuesday.
European Investment Bank and UN agree pact to expand reach of climate and development financing
The European Investment Bank and five UN institutions announced Tuesday an agreement aimed at increasing the impact of climate and development financing by making it easier to work on joint projects.
BIODIVERSITY (FREE TO READ)
TNFD calls for adoption of final recommendations following launch
The Taskforce on Nature-related Financial Disclosures (TNFD) has called for companies to adopt its recommendations as the “ball starts to move” following its long-awaited final framework launch.
Nearly 90% of global plastic pollution could be solved by 2040 with the right policy interventions, Nordic ministers say
The Council of Ministers in the five Nordic countries on Tuesday released a report saying most of the world’s plastic pollution problem could be gone in less than 20 years with the right policies in place, although infrastructure challenges are likely to obstruct their implementation.
Pacific island nation to sell conservation certificates to fund marine protection
The small island nation of Niue will sell certificates, dubbed Ocean Conservation Commitments (OCCs), to help protect its marine areas, targeting $18 million in funding.
Environment Bank markets biodiversity credits from pilot
The Environment Bank announced the launch of a ‘test bed’ site in England for a global voluntary biodiversity crediting scheme, as it aims to scale up restoration activities to cover 15,000 acres by 2025 of fully-funded projects over a 30-year period.
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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
INTERNATIONAL
Phasing out coal – Colombia and Panama on Tuesday joined the cross-stakeholder Powering Past Coal Alliance (PPCA), in response to the UN Secretary General’s call for countries to bring new, tangible, and credible climate commitments to his Climate Ambition Summit on Wednesday. The two countries committed to halting the development of new unabated coal power plants and phasing out existing plants. Colombia, the world’s sixth-largest coal exporter, will now work with the PPCA to develop a plan for phasing out coal power generation, while protecting mining communities. Heavily-forested Panama is already a carbon-negative country, but it seeks to further accelerate its clean energy transition by phasing out coal power generation by the end of this year.
Climate guarantees – The UK will provide guarantees of up to $300 mln to a climate funding facility in the Asia Pacific region designed to unlock $1.2-1.8 bln in climate financing. The guarantee will be directed to the Innovative Finance Facility for Climate in Asia and the Pacific (IFCAP), a leveraged guarantee mechanism for climate finance, which was announced in May by the Asian Development Bank, reports Reuters. The financing will aim to help achieve the UN SDGs and to build climate change-resilient infrastructure.
AMERICAS
Brazil reductions – Brazil will revise its climate targets this week, eyeing a 1.20 bln tonne GHG emissions cap by 2030 – a 53% reduction relative to 2005, reports Reuters. The news follows recent announcements from the environment ministry to return to the country’s 2015 Paris pledges, which benchmarked a 43% reduction in GHG emissions by 2030, relative to 2005. The new targets would place Brazil as more ambitious than the US, which has pledged to cut emissions by 50-52% by 2030, also relative to 2005.
Nine notes – The US Treasury published a document of nine principles for net zero financing and investment in an effort to support financial players with the targets. The principles are a product of engagement with ecosystem players and focuses on Scope 3-financed and facilitated GHGs. The recommendations include points such as an alignment of engagement practices with commitments, accounting for environmental justice, and credible metrics and targets.
RECording emissions – Commodity market price reporter Platts and clean energy data provider REsurety have partnered to introduce price assessments for emissions-adjusted Renewable Energy Certificate (RECs), they announced Monday. Platts will use REsurety’s emissions data, known as Locational Marginal Emissions (LME), to measure the emissions impact of individual renewable energy plants in the US, starting with the Electric Reliability Council of Texas (ERCOT), to incorporate carbon intensity into REC prices. In the coming months, the pricing service will extend similar emissions-adjusted REC prices to each of the independent operators of US power systems.
EMEA
Flight flutter – France will seek support from other EU countries for a minimum price on flights in Europe, in a bid to reduce the aviation sector’s contribution to climate change, Transport Minister Clement Beaune has said. France’s aim is to “open the debate on the fair social and environmental price of a flight ticket”, Beaune said. EU officials told Reuters that countries such as the Netherlands and Belgium support the idea in principle. Austria had previously proposed a minimum price, but faced legal complexities to take it forward. The outlook of winning broader support could prove challenging, particularly among flight-dependent and tourism-reliant island nations.
Sunak shift – UK Prime Minister Rishi Sunak is considering weakening some of the government’s key green commitments in a major policy shift. It could include delaying a ban on the sales of new petrol and diesel cars and phasing out gas boilers, multiple sources have told the BBC. The PM is preparing to set out the changes in a speech in the coming days. There is no suggestion that Sunak is considering abandoning the legal commitment to reach net zero carbon emissions by 2050, but he is expected to declare that other countries need to bear more of the burden of dealing with climate change.
ASIA PACIFIC
We’ve got money – South Korea’s LG Energy Solution has raised $1 bln in its first global green bond issuance, with bond proceeds to be used for investment in global battery manufacturing sites, Yonhap reports. The company, a supplier to top carmakers including General Motors and Tesla, is currently expanding its battery capacity in the US.
VOLUNTARY
Carbon negative chain – On Tuesday, carbon finance and technology firm Flowcarbon and blockchain network Aptos announced a partnership for the first carbon negative blockchain that uses 100% carbon removal credits. Under this agreement, Aptos will buy and retire Flowcarbon’s tokenised credits to counterbalance its estimated weekly carbon footprint of 7.75 tonnes CO2e. It will also offset its historical emissions. At Flowcarbon’s Carbon Smart Summit in New York on Tuesday, Aptos Head of Grants & Ecosystem described the move as a “first step”, saying he hopes it will help facilitate a wider adoption of carbon offsetting tools.
INVESTMENT
Accounting cash – Plan A, a Berlin-based carbon accounting and ESG reporting platform, has received $27 mln in a Series A round of funding led by US-based Lightspeed Venture, reports TechCrunch. This latest funding technically represents an extension on a $10 mln Series A round Plan A announced nearly two years ago. The company has now raised $42 mln over its six-year history. The latest round included investments from Visa, Deutsche Bank, and BNP Paribas’ VC arm Opera Tech Ventures, among numerous angel investors.
AND FINALLY…
Vineyard gambles – Up to 85% of the world’s current winegrowing areas are threatened by consistently high temperatures, according to a peer-reviewed study in Proceedings of the National Academy of Sciences, unless growers diversify and expand what, where, and how they grow, reports the Drinks Business. Vintners can roll the dice in different ways, such as by planting grape varieties that are resistant to drought and have a higher frost tolerance, or by reorienting rows so the grapes ripen more efficiently. Regenerative farming methods such as eliminating pesticides and increasing biodiversity can also strengthen resilience, while some wineries are beginning to invest in refrigerated trucks and irrigation equipment. Many more vineyard operations are also turning to mechanisation, such as electric tractors, in a bid to curb costs and tackle climate change as temperatures rise which makes it harder to harvest in the heat.
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