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TOP STORY
Three rainforest nations poised to offer tens of millions of sovereign carbon credits under Article 6
EMEA
EU legislators reach provisional deal on anti-greenwashing law
EU co-legislators reached a provisional agreement overnight on a consumer rights bill that includes banning companies from promoting products using environmental claims based on carbon credits.
UK PM pushes back car ban and heat pump targets, places faith in market to hit 2030 climate goals
UK Prime Minister Rishi Sunak has pushed back targets for electric vehicles and installing heat pumps, as he launched “sensible green leadership” that placed faith in the dynamism of markets to meet the UK’s 2030 climate target and its legally-binding net-zero 2050 goal.
EU’s carbon removal certification bill faces delays in Parliament over carbon farming
Disagreements among policymakers over whether to label farming practices that remove or reduce CO2 emissions as carbon removals have brought negotiations over the EU’s framework for certifying carbon removals to a standstill, according to stakeholders close to the file.
Euro Markets: EUAs rally after COT and options expiry as UKAs slump to less than 50% of EU price
European carbon rallied sharply in the afternoon after the expiry of the quarterly options contract triggered modest buying and amid an increase in investment funds’ net short positioning that encouraged a further short squeeze attempt, while UK Allowances slumped after a weak auction, with prices now at less than half the level of their EU counterpart.
EU needs scaled-up power infrastructure to ensure electrification rate can triple, says industry
Homegrown clean and renewable electrification remains the answer for the EU’s decarbonisation and security of supply, but more investment and infrastructure upgrades are urgently needed to enable a tripling in electrification rates by 2050, a according to an industry group report published on Thursday.
Switzerland schedules 2023-vintage allowance auction for November
Switzerland will sell 140,000 spot allowances over Nov. 13-15, the first of two planned CHU sales scheduled for this year, the government said on Wednesday.
AMERICAS
WCI jurisdictions should pursue Pan-American carbon market linkages, Quebec official says
North American jurisdictions participating under the linked WCI cap-and-trade market should pursue future linkages with Latin American states, and the only barrier to carbon markets integrating across the Western Hemisphere is price differential, a Quebec government official said Wednesday.
Partial linkage of North American carbon markets carries potential risks -experts
Partial linkages are an option to connect North American compliance carbon markets, but carry risks for jurisdictions if fundamental aspects are not harmonised, experts said on Wednesday on the sidelines of New York Climate Week sessions.
New York official discloses timeline for final regulation, compliance obligations in cap-and-invest system
New York is aiming to finalise its economy-wide cap-and-invest (NYCI) regulation next year and implement compliance obligations for regulated entities shortly thereafter, a government official said Wednesday.
Brazil ETS bill slated for Senate vote next week, as numerous amendments incorporated
The Brazil Senate Environmental Committee on Wednesday delayed a vote on amended cap-and-trade legislation until next week, with new changes seeking to more fully exempt certain sectors from compliance obligations and promote the role of nature-based carbon credits.
Brazilian firm launches new forest carbon methodology
A Brazil-based green economy firm on Wednesday announced a new methodology to generate over a million carbon credits from the country’s Atlantic Forest.
US gov’t makes available $4.6 bln in climate mitigation grants
The US EPA on Wednesday announced it will make available $4.6 billion in grants for subnational governmental and Tribal programmes that slash GHG emissions.
ASIA PACIFIC
South Korea releases measures to revive domestic ETS, reduce government intervention
South Korea on Wednesday released a comprehensive set of new rules to inject more liquidity into its domestic carbon market during the current phase (2021-25), with a focus on easing market participation and carryover rules.
China’s Shaanxi province launches regional forest offset scheme
One of China’s northern provinces has introduced an offset trading platform exclusively for forest carbon credits, amid rising domestic interest in nature-based projects ahead of the relaunch of the country’s national offset programme.
NGO urges Australia to speed up emissions cuts, restrict and separately account for carbon credit use
An Australian NGO on Wednesday urged the country to double its efforts in cutting emissions and to separately account for for carbon credits to highlight genuine GHG reductions.
VOLUNTARY
Only one-fifth of carbon projects are highly likely to get CCP label, says analytics firm
The vast majority of registered carbon carbon projects are not likely to attain the ICVCM’s Core Carbon Principles (CCP) integrity label, according to research published Wednesday that suggests parallel markets could form as a result.
ICVCM teases possible CCP-labelled futures contracts, outlines potential fast-tracking
Futures contracts for carbon credits tagged with its Core Carbon Principles (CCP) moniker could appear soon, a member of the Integrity Council on the Voluntary Carbon Market’s (ICVCM) executive body said Wednesday, as the cross-stakeholder group has introduced working groups that could fast-track some offset categories for labelling.
Xpansiv’s CBL set to launch live, two-way trading of specific project carbon credits and I-RECs
Xpansiv’s CBL spot exchange is set to launch live, two-way trading for specific project carbon credits as well as international renewable energy credits (I-REC) in October amid a jump in the number of active companies trading on the screen, the company announced on Wednesday.
British and Swedish energy firms unveil voluntary market BECCS methodology
British and Swedish energy companies next month will launch a methodology for voluntary bioenergy with carbon capture and storage (BECCS) projects, with those involved hoping it will become an industry standard for the issuance of carbon credits from the technology.
Canadian VER investor inks biochar offtake deal with multinational buyer
A Toronto-headquartered offset financier on Wednesday announced an agreement to provide thousands of biochar removal credits to a large multinational to meet the organisation’s carbon negative target.
Canadian tech startup develops digital carbon credit platform for voluntary market
A Vancouver-based technology startup, featuring personnel from a neighbouring company, has launched a carbon credit platform with aims to offer digital measurement, reporting, and verification services through a Software-as-a-Service (SaaS) model.
INTERNATIONAL
UN climate summit to highlight ‘movers and doers’ among world leaders
A UN climate summit in New York on Wednesday that has been convened by Secretary-General Antonio Guterres to inspire quicker progress to curb global warming will open by highlighting leaders who are making an impact.
Cancel existing oil and gas permits to halt temperature rise, says anti-oil group
To limit global warming and keep fossil fuels in the ground, governments must cancel existing permits handed to oil and gas exploration and production companies, an anti-oil group has said.
Invest in the oceans to bring down emissions, expert panel urges
Ocean-based climate action could deliver up to 35% of global emissions cuts needed to help deliver a climate goal of warming of no more than 1.5C by 2050 over pre-industrial levels, a high-level ocean expert group said Wednesday.
SHIPPING
IMO’s climate boss says global carbon pricing for shipping ‘very likely’ despite opposition
A global greenhouse gas pricing measure for shipping is very likely to be approved despite strong opposition from some countries, the International Maritime Organisation (IMO)’s head of climate action told Carbon Pulse on Wednesday.
BIODIVERSITY (FREE TO READ)
INTERVIEW: No robust nature market if finance sector can’t engage Indigenous peoples, says UN initiative
Potential investors in biodiversity credits must engage effectively with Indigenous peoples or risk sub-par returns, as the wider financial sector moves towards building nature into their decision-making, according to the co-lead of a UN finance initiative.
Queensland govt issues A$10 mln reef credit purchase guarantee
The Queensland state government in Australia has committed A$10 million ($6.4 mln) towards purchasing reef credits from two project developers if they can’t find other buyers, in a bid to kickstart the nascent market.
Global biodiversity fund operational after fresh donations announced
A multilateral biodiversity fund can now go live as sufficient contributions have been made, nine months after leaders set global targets on nature, alongside other restoration and protection commitments made at the United Nations General Assembly.
Over two-thirds of investors working on nature plan to increase their investment, says report
Existing investors in nature across six countries sense an emerging opportunity to boost their nature portfolio size, although political concerns may hinder the follow-through, a report published by an advisory firm on Wednesday has suggested.
EIB to screen clients on biodiversity risk from 2025
Starting in 2025, the European Investment Bank (EIB) will screen clients based on their biodiversity risk using a ‘nature-positive’ definition, it said on Wednesday.
Impossible to tell whether corporate biodiversity claims are greenwashing, academic says
Assessing whether companies are greenwashing through their ecosystem restoration project claims is not possible due to a lack of reporting, an academic has said.
ICYM
UPDATE – Certifiers go on the attack after investigation by Guardian, corporate watchdog levels fresh accusations against VCM
*Updates Tuesday’s article in CPD with additional comments from American Carbon Registry and Gold Standard*
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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
Startup shift – A $1 bln climate fund is being launched by former US President Bill Clinton and Mobileye co-founder Israeli billionaire Ziv Aviram, aiming to invest in transformative technologies to tackle climate change, reports Bloomberg. Clinton will serve as chair of the advisory board for the New York-based fund, EcoBridge Impact, while founders include Itai Lemberger and Robert Citrone. The fund will focus on later stage companies that need funding to scale up further, and Aviram and Clinton will put their own returns from investing in these groundbreaking technologies towards philanthropy.
AMERICAS
Methane progress – Canadian ambassador for climate change Catherine Stewart on Wednesday announced the country will exceed its target of slashing methane emissions 75% below 2012 levels by 2030. To achieve this, the government said its upstream oil and gas methane regulations will be published in draft form later this fall. They will achieve significant methane emissions reductions from new and existing upstream oil and gas facilities through performance standards, and a risk-based approach for leak detection and repair (LDAR) with increased stringency for sites with the highest risk of unintentional releases, like fugitive emissions.
Contract capture – Pathways, a consortium of the six biggest Canadian oil sands companies, detailed that its proposed C$16.5 bln CCS project will only move forward under the condition that the federal government sets up a contract to lock in future carbon prices. The consortium plans to build a CCS hub to store emissions from 14 projects in northern Alberta’s oil sands by 2030. Pathways President Kendall Dilling said a financial contract to help offset operating costs is also essential since the so-called contract for difference would help assure future revenues by guaranteeing a minimum price for the carbon captured by the project. So far, Ottawa has promised a 50% investment tax credit to support the project and the Alberta government is developing incentives to help defray capital costs. Canada has been in talks with heavy emitters about developing the contract for over a year, but this month it emerged the government is struggling to get the key tool in place. (Reuters)
Only the young – US President Joe Biden is launching the American Climate Corps, an initiative to train over 20,000 young people in critical climate skills required to deploy clean and efficient energy, conserve nature, and build community resilience. Biden’s move bypasses gridlock on Capitol Hill, where Democrats have introduced legislation to establish Civilian Climate Corps – proposing $30 bln in new funding – that is unlikely to pass the Republican-controlled House. In contrast, the American Climate Corps will depend on existing funding sources, although the amount of funding has not been disclosed yet. The White House released a website on Wednesday where Americans can sign up to learn more about the paid training programme. (Washington Post)
Cap-and-trade money – Washington State Representative April Connors (R) plans to introduce a bill that would give registered vehicle owners $100 each or $200 per family in light of high gas prices and what Connors calls excess revenue collected from the state’s carbon allowance auctions. The proposed bill for the 2024 legislature – called the Carbon Auction Relief Payment Program – could see future payments larger than $100 per car based on how much surplus revenue the state receives. There will be no direct effects on the state’s cap-and-trade programme. (Seattle Times)
EMEA
Net Zero Act – The EU Parliament’s environment committee (ENVI) adopted its opinion on the Net Zero Industry Act on Wednesday, passing on the torch to the lead committee, industry. ENVI suggested to keep excluding nuclear from the scope of favoured technologies, to keep the the Do No Significant Harm Principle in the EU Taxonomy as mandatory, and to prioritise unavoidable emissions in the CO2 storage provision. Lead ENVI lawmaker Tiemo Wolken noted how the committee opinion demanded a dedicated legislative framework on CO2 storage and that unavoidable industrial process emissions should have priority access over fossil fuel output.
Nordic miss – Sweden looks set to miss its binding 2045 net zero target with its current measures, according to the centre-right government’s 2024 budget submitted on Wednesday. It cited the tough economic climate along with a plunging krona, expecting to also fall short on other targets for protecting the environment. Of 19 climate and environment targets listed in the 2024 budget, the government said it is set to miss seven, including goals to reduce domestic pollution and emissions from the transport industry. Only two targets were due to be met. (Bloomberg)
New funds – The European Investment Bank (EIB) approved a €1 bln scheme for climate action and clean energy around the world, the board of directors announced on Wednesday. The new financing will support renewable energy expansion, improved energy efficiency, and help to adapt agricultural practices to a changing climate. It will include financing for mid-sized solar and onshore wind energy projects across Germany, financing small- and medium-sized onshore wind projects across Austria, and streamlined financing to accelerate development of renewable energy generation in Chile. The EIB also agreed to back comprehensive energy efficiency improvements public buildings across the Armenian capital, Yerevan.
ASIA PACIFIC
New record – Renewable energy generation set a new record on Australia’s east coast grid, the National Electricity Market, on Wednesday, pushing past 70.6% at 11:00, Renew Economy reports. The new record for maximum instantaneous share of renewables on the NEM, including rooftop solar and large-scale solar and wind, beats the record set one day earlier of 69.1% at midday on Sep. 19, and notches up a major new milestone in Australia’s transition to a grid powered mostly by solar and wind. The heavy lifting contribution to the new record was largely done by rooftop solar, contributing more than half of the new record with a 37.4% share at 11:45. Utility scale solar contributed 17.7%, while wind contributed 13.8%.
Green H2 – The Indian state of Rajasthan has approved the draft Green Hydrogen Policy-2023 to attract investors and explore clean energy sources within the state. Under the policy, companies engaged in green energy production will benefit from a range of subsidies and incentives. Provisions of the policy include a 50% exemption in transmission and distribution charges for a decade for renewable energy plants with a capacity of 500 kilotonnes per annum (KTPA) linked to the state’s transmission network. The total demand for hydrogen in the country stands at 6 mln tonnes, with Rajasthan accounting for 250,000 tonnes of this demand, reports Energetica India.
Multilateral renewable work – Six national scientific research organisations and researchers from Australia, the US, Canada, and the UK have joined together to work on issues around clean energy and its storage, according to Australia’s CSIRO. They have announced two multilateral research projects with a cumulative spend of $76.3 mln. The first will concentrate on computing, engineering, and policy for a ‘completely’ renewable energy grid. The second will study large-scale net-zero hydrogen.
Off track – China’s coal use is set to rise until 2026, pushing the world’s top carbon emitter ‘off track’ from the Paris Agreement, South China Morning Post reports, citing a report by Norway-based Rystad Energy. The country will only see its coal consumption begin to decline after 2027 as renewables take a larger share of power generation, according to Rystad’s estimate. Analysts with Climate Analytics and NewClimate Institute also noted that China’s rapid additions of new coal-fired power plants and the absence of a coal phase-out plan are responsible for the country’s falling behind the Paris Agreement pace.
NZGIF – The New Zealand Green Investment Finance (NZGIF) has led a NZ$170 mln capital raise to launch its newly created Solar Finance programme, it announced. The capital raise attracted international investors First Sentier Investors and Natixis Investment Managers, both of which contributed NZ$90 mln, alongside NZGIF’s own commitment of NZ$80 mln. The programme is the first issuance by a New Zealand-based financial institution to secure Climate Bonds Initiative certification. The Climate Bonds Initiative-certified solar loan will initially finance the country’s largest residential PPA portfolio, managed by solarZero.
VOLUNTARY
Timber credits ahoy – Timber and forest products company Weyerhaeuser announced in a press release on Wednesday that offset registry American Carbon Registry (ACR) had approved its Improved Forest Management (IFM) project in Maine developed by Carbon Direct, covering approximately 50,000 acres (20,200 hectares) and initially yielding 32,000 offsets verified through auditor Kibby Skinner. The project is expected to generate 475,000 credits over its lifetime. The firm is in early stages of developing several IFM projects across its 11 mln US acreage, which include two projects in the South slated for completion in late 2023 or early 2024, the release noted.
Travel well – Spotnana, a travel platform, on Wednesday launched Spotnana Carbon Removal to support corporate travel programmes with delivery of carbon removal offsets, through a biocarbon capture and storage partnership with Creturner Group. The company converts wood-based waste products into coal that is deposited into old, end-of-life mining pits. Upon offsetting, Spotnana customers are provided with a digital certificate in the form of a blockchain-based token.
SCIENCE & TECH
Earthshot innovation – Developer of land restoration carbon credit projects Boomitra is among the 15 finalists to be announced for the 2023 Earthshot Prize during the second Earthshot Innovation Summit, held in New York City. The event champions innovators focused on solving pressing global climate challenges across six continents, with three finalists across the following categories: Protect and Restore Nature, Clean Our Air, Revive Our Oceans, Build a Waste-Free World, and Fix Our Climate. US-based Boomitra comes under the Fix Our Climate category, alongside Australia’s Sea Forest, which develops seaweed-based livestock feed to reduce methane emissions, and US-based Aquacyl, which uses microbial technology to make the treatment of industrial wastewater more efficient and less polluting. The five winners of this year’s Prize will be selected by Prince William and the Earthshot Prize Council and will each receive £1 mln in prize money to further their environmental solutions, alongside mentorship, resources, and technical support.
AND FINALLY…
Bumblebee threat – Europe’s 68 species of bumblebees, including the plump black-and-yellow striped ones often seen buzzing around backyards, are in peril due to rising temperatures and habitat loss, say a team of Belgian researchers in the journal Nature. Accustomed to the cooler temperatures of the Northern Hemisphere, climate change is putting these species increasingly under threat. In a worst-case scenario, up to 75% of bumblebee species not currently threatened will see their distribution area shrink by 30% by 2061-2080, say the researchers, who collected data on 46 bumblebee species across Europe and made comparisons between the early to mid-1900s and the early-2000s. Most European bumblebees currently classified as of “least concern” on the IUCN’s list of threatened species could fall into the endangered category, while bumblebee species in Arctic or alpine environments could even be pushed to the edge of extinction, with an expected loss of 90% of their habitat. The impact of heatwaves and intensive agriculture is also seen to threaten the species.
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