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TOP STORY
Zimbabwe drops controversial plan to give 25% of carbon credit revenue to local communities
Zimbabwe has backed down on forcing carbon offset project developers to hand over a quarter of their share of proceeds from credit sales to local communities, the government announced Wednesday, following a backlash from investors and market participants.
AMERICAS
ANALYSIS: Major US agtech company still bullish on voluntary carbon market, while other ecosystem players demonstrate caution
Amidst sentiments of distrust in nature-based solutions and a stuttering voluntary carbon market (VCM), a once-billion-dollar-valued agtech company remains confident in its plan to scale up soil carbon offset generation, while others in the sector forecast more conservative economics.
Brazil Senate delays ETS bill vote to consider agriculture sector amendments
A Brazil Senate committee on Wednesday for the third time delayed a vote on cap-and-trade legislation, which in the most recent instance will involve discussing proposed amendments from the country’s agribusiness lobby.
California compliance offset issuance retreats, though exceeds 2022 levels through Q3
California took a slower pace in the issuance of compliance offsets over the last two weeks, including of those tagged with direct environmental benefits (DEBs), although it continues to distribute credits faster than last year, data from state regulator ARB published Wednesday showed.
California power emissions continue to recede through August
California electricity sector CO2 output maintained its 10-year decline through August, as the share of renewables and hydroelectricity continued to climb while imports decreased compared to 2022 levels, according to data published Wednesday.
RFS Market: RIN prices nosedive to 19-mth low as bearish fundamentals weigh
Renewable Fuel Standard (RFS) credit values fell into the double digits this week as traders said strong biomass-based diesel production and financial players selling was exacerbating a months-long drop in the price of RINs.
EMEA
Euro Markets: EUAs drift as positioning data shows small decrease in funds’ bearish bets
European carbon prices were slightly weaker on Wednesday as traders absorbed Commitment of Traders data that showed a small decrease in the net short position of investment funds, with several participants questioning whether this would be enough of a change to trigger another short squeeze.
Iceland agrees to buy 3.4 mln Kyoto emissions rights from Slovakia
Iceland has agreed to buy 3.4 million sovereign carbon units from Slovakia in order to fulfil its legally-binding obligations under the Kyoto Protocol’s second commitment period (2013-20).
EU must opt for stringent CO2 targets for trucks to maintain competitive edge -green group
The EU risks losing a sizeable chunk of the truck manufacturing market to competitors such as the US and China by 2035 if it does not adopt high CO2 standards for heavy-duty vehicles, according to NGO-commissioned analysis published on Wednesday.
Buying UK employees a pint of beer every week more expensive than climate action, finds survey
UK technology companies could spend less than the cost of a pint of beer on every employee per week to become one of the top 100 companies in the country for emissions mitigation, according to a survey published on Wednesday.
ASIA PACIFIC
China sees first purchase of salt marsh-based carbon credits
One of China’s leading tech firms has agreed to buy salt marsh-based carbon credits under a regional scheme, the first of its kind in the country, amid rising interest among domestic developers in the emerging blue carbon market.
NZU supply-demand gap predicted to widen, then shrink
The expected gap of NZU supply versus demand is expected to grow wider and sooner than previously predicted, before contracting, according to new figures from New Zealand’s Ministry for Environment.
Japan, UAE to strengthen cooperation on energy security and climate change
The climate envoy of the United Arab Emirates this week concluded an official visit to Japan ahead of COP 28 in November, as the two countries aim to strengthen their partnership on energy security and climate finance.
Malaysian bourse trades 16,500 Verra-registered credits in second-day trade
The world’s first Shariah-compliant voluntary carbon market opened trading this week, attracting large players but modest volumes.
VOLUNTARY
High-quality credits a must for defence of buyers’ carbon offset purchases, survey details
The quality of carbon credits has become the uppermost concern for offset buyers in the voluntary carbon market (VCM) looking to defend their purchase decisions under the onslaught of scrutiny from stakeholders, according to a recent market survey.
INTERNATIONAL
Ammonia trade set to scale up to support green hydrogen exports
Ammonia is likely to become a favoured method of transporting hydrogen, and export and import capacity to move it around will grow exponentially in coming decades, according to a report released Wednesday.
Report outlines steps for policymakers to ensure removals do not impede reductions
A report published Wednesday has set out 12 guidelines for policymakers to ensure that the scramble to scale carbon removals technologies such as direct air capture does not slow down much-needed emissions reductions.
SHIPPING
Global shipping needs bold collaborative action to decarbonise -UN report
Global shipping needs swift action and collaboration via economic incentives to decarbonise while ensuring a just and equitable transition, according to a UN report released Wednesday that appeared to downplay concerns by some nations that a carbon levy would hinder trade particularly among poorer nations.
BIODIVERSITY (FREE TO READ)
The pain of net gain: UK government delays mandatory biodiversity mechanism into new year
Market actors have expressed major concerns about the UK’s nature market direction, as biodiversity rules for the planning and development sector have been delayed by the UK government with no fixed date for its implementation.
Irish peatland standard to include biodiversity credits before 2026, non-profit says
An emerging Republic of Ireland peatland standard aims to address biodiversity credits before the end of 2025, a sustainable finance non-profit has said.
UK-France biodiversity credit panel’s 21 members revealed
The 21 members of a UK-France government-initiated panel aiming to galvanise international biodiversity credit markets have been announced.
New approach needed for high-integrity marine natural capital markets, says report
A group of environmental finance organisations have set out a vision for high-integrity marine natural capital markets for the UK in a new consultative report, which they hope will help close an estimated funding gap close to £50 billion for marine ecosystems.
Project accelerator launches to drive investments in African biodiversity
A group of five companies and organisations has launched an accelerator to attract investment in high-quality biodiversity projects across Africa, with a first call for proposals open until late next month.
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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
VOLUNTARY
Stronger together – The Glasgow Financial Alliance for Net-Zero (GFANZ), the Voluntary Carbon Markets Integrity Initiative (VCMI), and the COP28 Presidency have jointly committed to work closely together to drive ‘high-integrity’ voluntary carbon markets, according to a release Wednesday. The three entities convened a high-level roundtable of businesses, financial institutions, and standard setters on Sep. 19. They pledged to create broader recognition of the role that the VCM can play in meeting climate goals, create an end-to-end framework to increase the integrity of the market, and generate clear and ambitious demand signals by COP28 in Dubai. The statement is another indication of the summit’s hosts’ intent to ramp up the use of the VCM.
Westward bound – The VCMI has also announced a new partnership with the West African Alliance on Carbon Markets and Climate Finance (WAA), aimed at advancing sustainable and equitable participation in carbon markets in West Africa. The former looking to promote equitable carbon finance flows alongside its demand-side integrity work as nations in the region aim to advance their carbon project development.
Cancellation craze – Wednesday was a busy day on the UNFCCC’s voluntary CER cancellation platform, with more than 854,000 credits retired across 24 transactions. The largest cancellations included big batches done by First Climate and Climate Impact Partners on behalf of some of their unnamed customers. The majority of CERs retired came from hydro and wind projects in China and Vietnam, the data showed.
VCS advisory group – Carbon credit standards body Verra on Wednesday announced it has launched a new cohort of the Verified Carbon Standard (VCS) Program Advisory Group (AG). The organisation said the VCS AG will serve as a strategic resource to support the development of the VCS Program. The AG’s guidance will ensure the VCS Program meets the needs of the carbon market as it evolves and scales up its climate benefits.
EMEA
More oil – The controversial British Rosebank offshore fossil fuel development has been granted consent by regulators, the BBC reports. Rosebank is the UK’s largest untapped oil field and is estimated to contain 500 mln barrels of oil. Development and production approval has been given to owners Equinor and Ithaca Energy, following reassurances over environmental concerns. The plan has faced widespread criticism due to its impact on climate change. Last month, lawmakers across all major parties raised concerns that the oil field could produce 200 MtCO2. They wrote to the energy ministry urging it to block Rosebank, adding that most of the cost of development would be shouldered by the public. The news comes just after COP26 President Alok Sharma announced he will not stand for parliament at the next British election. He has consistently criticised Prime Minister Rishi Sunak’s climate policies.
Move faster – The transition of Big Oil towards cleaner energy still has a long way to go, as carbon emissions continue to rise, said a senior executive at Norges Bank Investment Management, Norway’s sovereign wealth fund, which owns a larger share of global stocks than any other investor. Just 23% of the companies in which Norway’s $1.4 trillion wealth fund invests have credible net zero targets, she said. The fund isn’t considering divestment from oil giants such as Exxon Mobil and Chevron, but rather the goal is to apply pressure from within, she told Bloomberg. That engagement strategy covers a portfolio comprised of more than 9,000 companies including other heavy-carbon emitters in the cement, steel, chemicals, transportation, and construction sectors.
Cross-boundary collaboration – The Netherlands and the UAE have agreed to collaborate on future industries such as renewable energy, artificial intelligence, agri-tech, and smart mobility, during a CEO roundtable in Dubai where the Prime Minister of the Netherlands and the UAE Minister of State for Foreign Trade were both present. The two nations have agreed to further establishment of a sustainable economic corridor, including the potential to transport green hydrogen between the two countries. The Netherlands is among the UAE’s top-five trading partners in the EU.
AMERICAS
Shut down woes – In the face of a government shutdown, billions of dollars to clean energy projects and a slew of incentives for energy efficient homebuilding, hydrogen, sustainable aviation fuels, a tax credit for manufacturers of solar panels, wind turbines, fuel cells, and other clean energy equipment face delay, Bloomberg reported Tuesday. The Internal Revenue Service is also seeking to provide guidance on the foreign entity of concern requirements for an EV consumer tax credit. The US Congress risks a government shutdown if it is unable to pass a short-term spending bill needed to keep the federal government open past the new fiscal year on Oct. 1, the report noted.
Canadian carbon management Canada looks to accelerate R&D, advance carbon pricing policy, attract investment, scale up projects, and build partnerships as outlined in its carbon management strategy, released Wednesday at the International Energy Agency in Paris, France by Liberal Minister of Energy and Natural Resources, Jonathan Wilkinson. Think tank Canadian Climate Institute swiftly emphasised that pursuit of carbon management technologies, such as CCUS, must not detract from presently cost-effective, available, and reliable solutions such as renewable energy, electric vehicles, and heat pumps.
ASIA PACIFIC
InterConnected – Hong Kong-based Intercontinental Energy has raised $115 mln via private investment to speed up the company’s portfolio of massive green hydrogen projects, Renew Economy reports. Singaporean fund GIC and Hy24, a joint venture between Europe’s largest private investment house Ardian and Fivet Hydrogen, are kicking in the funds to ramp up the deployment of Intercontinental’s four green hydrogen projects, three of which have a combined capacity of 101 GW. Up to 10 GW is expected to come online by 2030. The company’s most advanced project, the Asian Renewable Energy Hub, is located in Western Australia and aims to produce 1.6 mln tonnes of green hydrogen annually. BP bought a 40.5% stake in the project last year.
Stronger energy ties – Top industry officials of South Korea and Qatar on Wednesday discussed ways to enhance bilateral cooperation in the energy and shipbuilding industries, Yonhap reports. Discussions were mostly centred around renewable energy use and hydrogen production, according to the report. Korea’s Industry Minister Bang Moon-kyu also asked for the Middle Eastern nation’s support for Korean firms seeking to take part in major energy plant construction projects and win liquefied natural gas (LNG) carrier contracts.
AND FINALLY…
One size doesn’t fit all – Fast-fashion companies like Shein have adopted resale platforms in an attempt to curtail their emissions, but a new study by Trove and Worldly found that the strategy has minimal impact on reducing their carbon footprint. Such companies create about 11.5 kgs of CO2 for every item that they make, and their resale programmes will only lower emissions by 0.7%. Instead, the retailers can have a more significant impact on decarbonisation if they redirect efforts to their supply chain by using more sustainable materials or recycling. However, the study, which analysed five brand archetypes spanning fast fashion to premium apparels, found that repurchase programmes do work better for some brands. Premium labels – which create around 16 kgs of CO2 per item – could decrease their emissions by 14.8%, while outdoor brands such as Patagonia create around 12.5 kgs of CO2 for every item, and could abate emissions by 15.8%. (CNBC)
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