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TOP STORY

Rating agency delists Kariba REDD project after awarding lowest score possible

The troubled Kariba REDD project suffered another blow to its reputation on Tuesday after a rating agency downgraded its carbon credits to the lowest possible score, but also took the unusual step of delisting the project from further assessment in the future.

ASIA PACIFIC

Hong Kong, Shenzhen exchanges join forces to develop Greater Bay Area carbon market

Hong Kong Exchanges and Clearing (HKEX) on Tuesday teamed up with the carbon exchange in Mainland China’s Shenzhen with plans to speed up the development of a carbon market ecosystem spanning Guangdong province, Hong Kong, and Macao.

ACCU outlook sees prices constrained, direct emissions cuts limited until late 2020s

An outlook on Australian Carbon Credit Units (ACCUs) prices has estimated direct cuts in emissions covered under the Safeguard Mechanism are unlikely to be seen until the end of the decade.

Climate think tank lashes Australian science body’s emissions calculations for new gas project

A climate-focussed think tank has lashed out at a collaborative report by Australia’s top science body, suggesting the emissions calculations it has made for a frontier gas project and possible LNG plant are inaccurate.

Japanese biomass hopeful plans steel emissions reduction of 30%

A Japanese steelmaker is looking at beginning the long path to creating lower emissions steel via a collaboration with ZE Energy and NextCarbon to use biomass coke.

NZ Market: NZU price in holding pattern ahead of election special votes result

NZUs have traded mostly sideways since the national election earlier this month, as the market awaits the release of the critical “special votes” result which will dictate the final makeup of the government.

Australian company discovers hydrogen at nation’s first dedicated well

The hopes for naturally occurring hydrogen received a shot in the arm Tuesday morning as a discovery in a distant part of Australia made by a company worth just over A$35 million ($22 mln) was reported to the nation’s stock exchange.

High proportion of expensive loans and few grants hindering Vietnam’s JETP -reports

Vietnam’s Just Energy Transition Partnership (JETP) is being hampered by a lack of grants and a surfeit of loans with onerous interest rates, according to Reuters.

EMEA

Euro Markets: EUAs snap losing streak as traders cover shorts ahead of first auction pause in eight weeks

European carbon prices set yet another five-month low in early trading on Tuesday before snapping a four-day losing streak to end the month of October 3.2% lower from a month earlier, as traders prepared for the first gap in the auction schedule since early September.

EU should do more to transform its soils to help boost carbon sink -report

The EU should set binding soil health targets for member states, provide tailored government support for farmers, and do more to involve the private sector to ensure soil contributes to the growth of the bloc’s carbon sink by the end of the decade, according to an NGO report compiling stakeholder views published on Tuesday.

AMERICAS

California LCFS net credit generation picks up during Q2

California Low Carbon Fuel Standard (LCFS) saw their third-highest quarterly net credit build during the April-June period, as volumes of renewable natural gas continued to push past decline in ethanol credits, growing the surplus bank to a new all-time high, according to state data published Tuesday.

Indigenous group drops REDD+ appeal over committee dispute

An Indigenous group appealing Guyana’s jurisdictional REDD+ programme said it was forced to give up on its appeal Friday, claiming the committee overseeing the complaint was stacked by the standard responsible for issuing the credits.

New research shows greater range for regional warming caused by Amazon deforestation

New research published Monday concludes that deforestation in the Amazon has a more drastic and long-reaching warming effect on non-local land surfaces than previously known, suggesting an even greater importance for forestry projects located in the world’s largest rainforest.

INTERNATIONAL

Global compliance market value to grow 5% in 2023 despite drop in traded volumes -report

Compliance carbon markets are expected to grow by around 5% in 2023, despite a predicted decline in total trading volumes as a consequence of the war in Ukraine, according to a new report.

Government regulation is most important driver of energy transition for businesses, report finds

Most businesses around the world say government regulation is the most important driver when it comes to accelerating their own transition to cleaner energy, outweighing the impact of pressure from consumers and investors, according to a report released Tuesday.

VOLUNTARY

New partnership reduces CO2 network liabilities with end-to-end modelling capabilities

Operators of CCS networks set to come online around the world in the next few years may be able to reduce CO2 storage liabilities for emitters, thanks to a new partnership between two tech firms that enables network operators to model their entire CO2 network from the point of carbon capture to final injection point.

Global South clubs together to push voluntary market growth at COP28

Governments and business leaders from the Global South have called for a coordinated approach to accelerating growth of carbon markets ahead of the COP28 UN climate talks in Dubai, reaffirming their faith in voluntary markets, and calling for the harmonisation of methodologies in relation to the Article 6.4 mechanism of the Paris Agreement.

Bio-agricultural company introduces the first-ever mycorrhizal carbon credits programme

A bio-agricultural company announced the global launch of its Verra-certified carbon credits programme that utilises mycorrhizal fungi for carbon dioxide removal, the first of its kind.

Farmers’ inclination to sell credits could hinder their corporate relationships, says business group

The growing inclination for farmers to generate and sell carbon credits, rather than help their food and agricultural clients achieve their insetting objectives, could hinder supplier relationships in the agricultural sector, a global business association representative told a conference this week.

BIODIVERSITY (FREE TO READ)

Forest Investment Associates prepare nature positive strategy of up to $40 mln

A forestry strategy with a nature positive objective in Latin America is in development by asset manager Forest Investment Associates (FIA), Carbon Pulse has learned.

Space tools launched to assess South Africa’s biodiversity hotspot

A NASA-backed project aims to map the biodiversity of South Africa using devices that are usually found on the space station to study planets and stars, according to participating scientists.

Most Dutch financial institution boards fail to prioritise biodiversity, study suggests

The relevance of biodiversity was rated as “moderate” by the average financial institution board in the Netherlands, the Dutch Association of Investors for Sustainable Development (VBDO) said in a study.

Biodiversity Pulse: Tuesday October 31, 2023

A twice-weekly summary of our biodiversity news plus bite-sized updates from around the world. All articles in this edition are free to read (no subscription required).

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Premium job listings

• Deputy Representative, Africa and Middle East, Verra – Remote (Worldwide)
• Director, REDD+ Program Development and Innovation, Verra – Remote (Worldwide)
• Director, Forest Management Program Development and Innovation, Verra – Remote (Worldwide)
• Senior Manager, Accreditation Program Standards, Verra – Remote (Worldwide)
• Senior Director, Business Development (US), Carbonfuture – Remote
• GHG Management, Environmental Specialist, First Environment – Sacramento
• Project Administration Specialist, Climate Change, First Environment – Sacramento
• EMEA Policy Editor, Carbon Pulse – Brussels/London/Remote (in Europe)

Or click here to see all job listings

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CONFERENCES

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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

Petrobras purchase – A REDD Brazilian forest conservation project by Envira Amazonia that sold 175,000 credits to Petrobras in September has seen its renewal denied by Verra for allegedly using deforested land to account for 175,000 tonnes of CO2 worth of offset emissions, Gazeta Do Povo reported Tuesday. Petrobras had been advertising its product as the only carbon neutral gas in Brazil, based on the offset project. The credits that Petrobras are still considered valid.

Green hydrogen – Portugal’s EDP and ArcelorMittal Tubarao, the Brazilian subsidiary of global steel giant ArcelorMittal, are partnering up to carry out a technical and economic feasibility study for a green hydrogen project in Brazil. The study is expected to be completed within a year. Its first stage will see both parties investigate the technical, economic, and environmental aspects of the project, while they will also define the scope and requirements necessary for its implementation. The ArcelorMittal Group is targeting carbon neutrality by 2050 and its Brazil subsidiary is looking to increase low-carbon steel production as part of that. (SteelOrbis)

Longer CO2 tax holiday – Canada’s province of Ontario has extended a 5.7 cent/litre gas tax cut to June 2024 that first went into effect in June 2022, and is being extended for a second time, CBC reported Tuesday. It was initially expected to end in December of this year but will now remain in effect until June 30, 2024. The province will also maintain a 5.3-cents-per-litre reduction in the price of diesel fuel. Without the tax cut, the tax rate on gas and diesel in Ontario would stand at 14.7 cents, the government said. Ontario Premier Doug Ford joins other Canadian Premiers who are calling on the federal government to scrap its carbon tax, calling the government’s action unfair in giving a reprieve to some but not others. Last week, Ottawa exempted home heating oil from the federal carbon tax for three years, which would help Atlantic Canada as 30% of homeowners in the region still use furnace oil to heat their homes.

No more exemptions – Prime Minister of Canada Justin Trudeau informed that the federal government will not be offering any more carve-outs to the carbon pricing policy beyond the plan to pause the tax on home heating oil as former central bank Governor Mark Carney urged the Canadian government to stick with predictable climate policy. Carney questioned the federal government’s three-year pause on the carbon price of home heating oil amid Trudeau’s clarification that the lift is designed to end the use of home heating oil, a part of which includes rolling out new incentives to make it more affordable for those using heating oil to transition to heat pumps. 

ASIA PACIFIC

$1 bln+ buyout – Blackstone and Vista Equity Partners have agreed to acquire Australia-based Energy Exemplar, an energy market software provider, for over $1 bln, Reuters reports. The two buyout firms will each hold a 50% stake, while Energy Exemplar’s existing owner, private equity firm Riverside Company, will cash out, sources have said. Energy Exemplar has grown at an annual compound rate of 30% since 2018 and provides software tools used by more than 500 companies in 79 countries to simulate and forecast the electric, water, gas, and renewable energy markets. Blackstone’s investment is being made through its energy transition arm. The deal therefore represents a bet on the energy transition and a need to use simulation software to maximise efficiencies on increasingly distributed and renewables-heavy electricity grids.

“Vigorously defend” court case – Australian oil and gas producer Santos has been forced to halt its pipeline development in the Timor Sea in a third legal case brought against itself and larger peer Woodside Energy in a year. The pipeline is part of its multi-billion dollar Barossa gas project in the Timor Sea that would send gas as ‘backfill’ to the Darwin LNG plant. Development has already been pushed back a year after Traditional Owners won a federal court case alleging Santos did not adequately consult with them as part of its environmental plan. The Indigenous community is alleging the same in this new pipeline case, which Santos has said it will “vigorously” defend. Woodside’s seismic campaign was halted on the same grounds recently after the offshore environmental regulator greenlit its EP in July. As it stands, work for both of Australia’s LNG developments has been hampered. Santos’ project does not add to Australia’s export capacity as it replaces gas that was used from a now-depleted field but Woodside’s Scarborough project adds 5 million tonnes of new LNG capacity. 

Banking on it – Japanese project developer Bywill on Tuesday announced it had secured a deal with Fukui Bank to offer its services to the bank’s customers in Fukui prefecture in creating environmental value related to decarbonisation and carbon neutrality. The deal comes just a day after Bywill announced an agreement to secure J-Credits for clients of Hachijuni Bank, another regional lender.

Green cement – Ultratech cement, a Mumbai-based cement company is investing Rs 13,000 crores ($1.56 bln) to increase its capacity by an additional 21.9 mln tonnes per annum through a combination of brownfield and greenfield projects. Commercial production from these new capacities will go on stream in a phased manner from financial year 2026. The company is also investing in alternative fuel feeding, saying further that there will be no investment in thermal power capacity, keeping in line with the company’s mission to reduce carbon emissions.

Green pigs – Australian miner Magnum has signed an agreement with Saudi Arabia’s Midmetal to jointly fund a feasibility study on producing green pig iron on a 50/50 basis, the company told the ASX Wednesday. The study will assess the technical and economic benefits of producing green pig iron in Saudi Arabia using HIsmelt technology to smelt waste materials from Saudi steel mills, plus iron ore concentrate from Magnum’s Buena Vista mine in Nevada, US. These iron materials will be smelted into high quality pig iron using biochar sourced from sustainably produced biomass, according to Magnum. This will allow the pig iron to be certified as having net zero CO2 emissions and attract a pricing premium, it said. The study is expected to be completed by the end of the year.

EMEA

Climate tech hotspot – The UAE is in leading place for climate tech venture funding in the Middle East and North Africa region — securing $401 mln, or 62% of the total venture funding across 45 deals between 2018 and 2022, according to a report by MAGNITT. Turkey and Saudi Arabia followed with $124 mln and $68 mln, respectively, in climate tech funding, while the final two spots went to Egypt with $42 mln and Tunisia with $6 mln over the past five years, the research firm said. Horticulture and renewable energy were leading sectors for venture funding into climate tech in the region. (Zawya)

Low-carbon MoU – Chevron New Energies has signed a Memorandum of Understanding (MoU) with the Angola government to explore potential low-carbon business opportunities, including nature-based and technological carbon offsets, low-carbon intensity biofuels, and hydrogen, plus CCS. The partnership will support the creation of a regional centre of excellence to attract and promote low-carbon investments. Chevron was one of the first US oil companies to enter the African country and says it is dedicated to helping the nation develop its energy resources. Angola aims to achieve 70% renewable energy capacity in its energy make-up by 2025, and to reduce CO2 emissions by up to 14% compared to BAU by 2025 under its NDC.

Waste CO2 – Aker Carbon Capture has been awarded a feasibility study by green energy producer TES to explore the implementation of a carbon capture plant at a waste-to-energy facility in Germany, with the captured CO2 then used to produce electric natural gas (e-NG). The plant will capture 400,000 tonnes of CO2 per year, which will subsequently be transported by railcar to the TES facilities at Wilhelmshaven in northern Germany to produce e-NG, which is electric natural gas derived from green hydrogen and CO2. E-NG is chemically the same as natural gas and so blends easily into the existing fuel mix — making it a simple and cost-effective solution for scaling up the green transition. By 2030, TES aims to produce around 15TWh of e-NG annually, equivalent to 0.4 megatonnes of green hydrogen. (MarketWatch)

Czech biomethane gets a boost – The European Commission has approved, under EU state aid rules, a €2.4 bln Czech scheme to support the building and operation of new or converted sustainable biomethane production plants. The aid will take the form of a green bonus to biomethane producers for each MWh of biomethane produced for a duration of 20 years. The measure is expected to support installation with a total output of around 337 million standard cubic metres of sustainable biomethane.

VOLUNTARY

Buffer insurer – London-based carbon insurance specialist Kita and certifier Ecosystem Restoration Standard (ERS) have signed a Letter of Intent (LOI) to work together to determine the best mechanisms through which Kita can insure ERS’s credit buffer pool, according to a Tuesday press release. Kita’s insurance is intended to help manage near-term delivery risk for ERS’s buffer pool, and the companies claim the LOI represents the next evolution of carbon buffer pools. By linking buffer pools to insurance, the two hope to enable: increased resilience, efficiencies of scale around modelling, data analyses, and MRV, higher liquidity, and a financial backstop that builds confidence with both sellers and buyers of carbon.

AND FINALLY…

A red cedar ruin – The University of Nebraska’s (UNL) Cedar Point Biological Station’s (CPBS) field research facility has built a micro dwelling of 190 sq. ft from locally sourced eastern red cedar wood that is carbon negative, rather than buying wood from Canada, according to a local news outlet on Tuesday. The small cabin called ‘Mizer’s Ruin’ releases about six tonnes of carbon but sequesters about seven tonnes, according to calculations done for the project completed in partnership with UNL’s College of Architecture. Locally sourcing materials means less emissions from shipping and fuel consumption. One of the reason’s Mizer’s Ruin received its name was the use of a Mizer saw mill – a portable mill intended for homesteading and locally sourcing timber – to process the lumber. (North Platte Telegraph)

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