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TOP STORY
Article 6 body adopts inclusive carbon removals guidance, but pushes significant technical work to future
The UN body responsible for shaping the rules for carbon crediting under Article 6 of the Paris Agreement adopted its carbon removals recommendations on Friday, a day after agreeing wider methodological guidance, with the text described as “general” and “technology-neutral” by observers and leaving a significant amount of additional technical work for the future.
VOLUNTARY
FEATURE: Generating biochar credits from bamboo offcuts is next frontier for plantations
The market potential for using bamboo manufacturing offcuts to produce carbon credit-generating biochar is heating up, as an increasingly attractive option for developers already generating nature-based removal credits from fast-growing bamboo plantations with excellent CO2 sequestration ability.
UAE project developer exploring blue carbon credit potential in Vietnam
A Dubai-headquartered mangrove restoration firm is exploring the potential for blue carbon in Vietnam, after signing an MoU this week with a jurisdiction in the Southeast Asian country, the company has confirmed to Carbon Pulse.
Carbon removal fund secures advance contracts for $46.6 mln in direct air capture units
A removals buyers club has sealed its first offtake contracts with direct air capture (DAC) startups for the future delivery of units totalling over 70,000 tonnes, the initiative announced this week.
Standard sees first biochar carbon credits awarded to an African project
A Namibian biochar project has become the first in Africa to be awarded carbon removal credits under the European Biochar Certificate (EBC) C-Sink Standard, with its Germany-based developer intending to establish six projects in the nation by next year.
AVIATION
Premature to allow soil carbon credits under UN’s CORSIA aviation offsetting scheme, green group argues
Allowing soil carbon credits to be surrendered during the initial phases of ICAO’s CORSIA scheme for international aviation would be premature due to the project type’s lack of MRV standards and a “realistic, defensible” baseline for estimating emissions, a US-based green group has claimed.
US airline offers SAF and offset credits to passengers
A US airline announced a partnership with with a Software-as-a-Service (SaaS) firm offering customers the option to purchase credits against flight emissions, in a press release on Friday.
EMEA
Attempt to squeeze in carbon farming practices to EU’s carbon removal bill likely to be shot down
The European Parliament’s agriculture committee is planning on proposing several farming practices for the EU’s Carbon Removal Certification Framework on Nov. 21 as part of the bill’s full Parliament vote, though several sources don’t expect the changes will be voted through, as the Council of member states adopted its own negotiating mandate on Friday.
Energy Charter Treaty risks another reform failure despite national withdrawal moves -think-tank
A further attempt to reform the controversial Energy Charter Treaty (ECT) is likely to fail again at its annual meeting next week despite multiple EU nations announcing they will leave the pact due to its incompatibility with the bloc’s climate law, an environmental think-tank warned on Friday.
Euro Markets: EUAs reverse early gains to post 2.7% weekly loss as sellers maintain the pressure
European carbon prices gave up early gains, extending Thursday’s steep plunge to post a weekly drop of 2.7% as a late burst of selling activity overcame limited buying interest ahead of the weekend, while energy markets weakened amid a persistently lacklustre demand outlook.
Loan from German development bank injects new life into South Africa’s JETP
South Africa will receive €500 million in concessional loans from German development bank KfW to undertake a low-carbon transition of its coal-based power sector and promote long-term energy security, the German government confirmed in a statement on Friday.
UK government to invest £4.5 bln in green industry grants and subsidies
The UK government on Friday announced it will invest £4.5 billion in subsidies and grants for green industry from 2025, with just under half going to the electric vehicle sector and £1 bln to green energy including hydrogen.
AMERICAS
Canadian legal experts mull over constitutionality of federal carbon pricing exemption for home heating oil
A Canadian law professor argued in an op-ed Friday that the federal Liberal government’s carbon pricing carve-out for home heating oil could “imperil” the legality of the carbon price in itself, while other legal experts rebut the arguments.
Wisconsin Democrats introduce suite of proposals to advance climate action
Democrats in the Wisconsin Assembly on Thursday introduced a legislative package to accelerate climate action in the state, including energy efficiency measures, sustainable agriculture practices, and considerations for the social cost of carbon (SCC).
Emitters, speculators once again favour different CCA vintages, while both drop RGAs, WCAs
Compliance entities preferred current year vintage California Carbon Allowances (CCAs), while financial players opted for next year’s CCA vintage, and both groups shed RGGI Allowances (RGAs) and Washington Carbon Allowances (WCAs), US Commodity Futures Trading Commission (CFTC) data showed Monday.
ASIA PACIFIC
CN Markets: CEAs extend losses despite improved trading volume ahead of November deadline
Prices in China’s CO2 allowance market over the past week continued to drop even with robust trading activity ahead of the primary compliance deadline, while the offset market saw a string of new policies to support the relaunch of the voluntary programme.
China releases supplementary rules on CCER project development and trading
Chinese regulators have published three supplementary rules for offset trading and new projects registered under the country’s national voluntary scheme, a move considered essential for participants to get engaged in the undersupplied market.
Western Australia commits cash, incentives to attract CCUS, hydrogen, and clean energy projects
The resource state of Western Australia has announced a raft of new measures to incentivise hydrogen, CCUS, and renewable energy projects in a bid to gear up its energy transition and cut carbon emissions.
Bottom trawling could disturb vast stocks of marine organic carbon, NZ study shows
A New Zealand study has revealed how much organic carbon is stored in marine sediments off the country’s waters and how vulnerable it is to disruption from bottom trawling.
BIODIVERSITY (FREE TO READ)
Nations found to ignore Indigenous peoples, local communities in biodiversity plans
The vast majority of countries overlook or insufficiently involve Indigenous people and local communities (IPLCs) when drawing up biodiversity action plans, despite a large body of evidence that including them makes for far more effective nature conservation strategies, a report has found.
Bezos Earth Fund donates $30 mln to forest, grassland conservation
The Bezos Earth Fund has granted a third donation of $30 million to the US National Fish and Wildlife Foundation (NFWF), earmarked for protection of threatened longleaf pine forests and Northern Great Plains grasslands.
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BITE-SIZED UPDATES FROM AROUND THE WORLD
Carbon Pulse has teamed up with CME Group to provide the market operator’s 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
Thinking ahead – India is calling for a mechanism in the planned free-trade agreement (FTA) with the UK to address Britain’s possible tax on imports of high-carbon goods like steel, according to three Indian sources, Reuters reports. Britain initiated consultations earlier this year on the implementation of a potential carbon border tax to mirror that of the EU CBAM. India now wants clauses included in the planned FTA to commit Britain to holding bilateral consultations with New Delhi in case a CBAM-like measure were introduced, Indian officials say. The India-UK FTA talks have hit several challenges, with the ambitious pact now standing delayed by over a year from its previous deadline.
EMEA
Closing coal – The World Bank and European Bank for Reconstruction and Development are among global lenders backing a €4-bln plan to wean North Macedonia off coal-fired power, with the deal expected to be announced at COP28, Euractiv reports. It will lay out a plan to replace the country’s two coal-fired power plants with 1.7 GW of renewable energy and follows similar efforts to retire coal plants more quickly in South Africa, Indonesia, Vietnam, and Senegal. Its cost equates to €2,000 for each of the Balkan nation’s 2 mln people, highlighting the difficulty faced by many small and low-income countries in financing the clean energy transition. Both of North Macedonia’s coal plants are ageing, outdated, and run on lignite, the most polluting form of coal power. The nation is in the running to receive concessional finance from the World Bank, in addition to funding from multilateral lenders like the International Finance Corporation (IFC).
Climate top-up – Germany lawmakers are upping the amount that the country directs to climate protection abroad by €500 mln, meaning that the Green-led economy and climate ministry will now have a total €1.5 bln for climate and biodiversity investments abroad at its disposal over the next 10 years, according to an agreement by the German parliament’s budget committee. The capital could be put towards sustainable development and new green jobs, it has been suggested. Overall, annual public international climate finance by Germany amounts to more than €6 bln. (Clean Energy Wire)
Uncovered – State-run oil and gas fields in the UAE have been flaring gas almost on a daily basis, despite having committed 20 years ago to a policy of no routine flaring, the Guardian reports. The analysis looked at flaring in 32 oil and gas fields in the country, 20 of which are run by Adnoc, whose CEO Sultan Al-Jaber, will preside over COP28 set to kick off in a couple of weeks’ time in Dubai. The analysis revealed that four fields flared on at least 97% of the days for which data are available, while one field, Adnoc LNH, flared gas on more than 99% of the days monitored by satellite from 2018 to 2022, according to data produced for the Guardian by the Centre for Research on Energy and Clean Air (Crea). The World Bank has an initiative in place to achieve zero routine flaring by 2030. The UAE and Adnoc are not members, although Bahrain and Saudi Aramco are.
ASIA PACIFIC
Backflip – The NSW Department of Planning and Environment has backflipped on controversial draft planning guidelines, which would have deemed nearly the entire state unsuitable for new wind farms, Renew Economy reports. The department released an advisory saying the original map that accompanied the draft which declared most of the state as “less suitable” had been changed. The map’s legend has been changed, with the “less suitable” indicator replaced with “suitable”. It now means that all the areas mapped – within and near the five new renewable energy zones and along the transmission lines that link them – are now deemed as “suitable”. The wind industry has welcomed the change, but there are ongoing concerns about dysfunction within the governmental department.
New projects – Japanese project developer Creattura has received approval for the registration of its methane reduction project under the domestic J-Credit scheme, it announced Friday. Creattura said it will seek collaboration with local governments and agricultural corporations to promote the initiative, which aims to reduce emissions by extending the mid-drying period in rice cultivation. RE100 Electric Power, which develops renewables projects, on Friday also announced that it had successfully registered a solar project under the J-Credit programme.
Greener flight – Japan Airlines has separately signed agreements with three hydrogen-electric aircraft/engine manufacturers, including H2FLY, Universal Hydrogen, and ZeroAvia, in order to study the feasibility and maintainability of bringing hydrogen-fueled next-generation aircraft, according to a statement. The airline said it plans to engage in extensive collaboration with the three companies based on their different characteristics, accelerating the movement toward social implementation of hydrogen aviation in Japan.
Overseas project – Korea Western Power has formed a consortium with Korea Investment and Securities and environmental engineering firm KICC to help reduce GHG emissions in Uzbekistan, Yonhap News Agency reports. The companies plan to reduce emissions by a total of 120,000 tonnes over the next 10 years by converting Uzbekistan’s farm boiler fuel from coal to biofuels. The alliance said they will be able to secure 2.7 bln won ($2 mln) from carbon credits and biofuel sales through the implementation of the project, without elaborating on the crediting scheme.
Block by block – Singapore-based InfraBlocks, a climate fintech firm, has partnered with the US-based Ogni Capital for the technical development and exploration of AI solutions for carbon markets, the company said in a statement Friday. Through the partnership, InfraBlocks plans to expand in new markets and will solve the two issues of low quality credits, and assess funds for carbon projects by providing a “one stop approach” to decarbonization, monetization, and financing of emission reduction projects. The firm has received a grant from Monetary Authority of Singapore’s (MAS) Financial Sector Technology and Innovation (FSTI) proof-of-concept (POC), and is also planning to launch a Decarbonization Fund, aimed at investing venture capital in Asia into technologies and offset monetisation businesses whose strategic focus is decarbonisation through long-term sustainability.
AMERICAS
Tax tip – On Friday, the US Treasury released guidance on the Investment Tax Credit in order to spur investment under the Inflation Reduction Act (IRA), according to a press release. The guidance provides the private sector with additional clarity and certainty in making investment decisions for clean energy projects, which is critical as companies secure financing for clean energy projects, the release stated. The Notice of Proposed Rulemaking (NPRM) provides insight into the eligibility of power conditioning and transfer equipment and standalone battery storage for the ITC, as well as proposes rules around the inclusion of costs of interconnection-related property for lower-output clean energy installations and updates on a range of other technical definitions. Treasury and the Internal Revenue Service (IRS) will accept comments on the NPRM for a period of 60 days.
Massachusetts moves – National Grid said its two Massachusetts utility firms have submitted an investment plan to state authorities as part of an initiative to transition to cleaner energy sources as part of the group’s required case rate filing. Submitted by Massachusetts Electric Co. and Nantucket Electric Co., National Grid said the plan is a part of its Future Grid project, which seeks to transform the electric grid in the state. The company has been trying to speed up its clean energy projects as global economies target net-zero emissions. If implemented, over the five-year investment period, a residential customer with the usage of 600 KW hours per month would see a $4.86 increase in their monthly bill, the company said. (Reuters)
Addressing climate displacement – Senator Edward J. Markey (D) and Congresswoman Nydia Velazquez (D) announced the reintroduction of the Climate Displaced Persons Act (CDPA) to place national measures for a “more equitable immigration pathway” to the US for people displaced by climate change and critical support for people affected by climate disasters internationally. The legislation aims to remedy the absence of formal protections for people displaced by climate change by establishing a Global Climate Change Resilience Strategy and ensuring that agencies collect and maintain data on climate displacement. The CDPA would direct the Department of State to develop a list of the 100 most climate vulnerable countries by collecting and reporting data on visa recipients’ demographics to support an equitable response to displacement driven by the climate crisis.
More methane – A study from Carleton University’s Energy and Emissions Research Lab found that emissions from Alberta’s natural gas industry are underestimated by almost 50% following the examination of 3,500 different oil and gas facilities and 5,600 wells. The province’s methane emissions were officially estimated to equal 15 mln tonnes of CO2 in 2021, around the annual emissions of 3 mln cars, according to the EPA. However, if the study holds true, the correct equivalent for the emissions would be closer to 4.5 mln cars.
Challenge Canada – The government of Canada is offering $170 mln for energy efficiency retrofits, waste diversion, and fuel switching, like renewable energy production or heat pump installation projects, a press release from the country’s environment ministry said. The Challenge Fund announcement was made at the University of Victoria to help electrify 32 of its buildings. The fund gave the university $2.4 mln for the conversion project.
VOLUNTARY
Not matching up – More than half of corporates have introduced climate targets that do not align with their current policy lobbying and influencing activities, a study from InfluenceMap found. The data, based on an analysis of 293 companies from Forbes 2000, found that 21.5% of companies are at “significant risk” and 36.5% of companies are at “moderate risk” of greenwashing. Overall, almost 60% of the world’s largest companies have launched climate commitments that are being undermined by their approaches to policy influencing. Some 93% of companies reference “net zero” or similar terms on their websites, but a minority match these references with government engagement around climate policy, it found. The report suggests that non-state actors should no longer claim to be net zero if they continue to engage with fossil fuels, support deforestation, or other environmentally damaging activities, and recommends that they prioritise reducing emissions over buying inexpensive carbon offsets. (edie.net)
AND FINALLY…
No place like net negative – A carbon-negative home recently sold for $4 million in California’s Bay Area, boasting four bedrooms, three bathrooms, and the ability to produce more energy than it uses, reports luxury magazine Robb Report. The building, developed by California-based housing startup Aro Homes in partnership with Seattle architectural firm Olson Kundig, develops net zero homes through an off-site/on-site construction strategy. Components are built at the startup’s plant in Sacramento, followed by delivery and installation on the lot, which scales down the typically 18-plus-month building process down to approximately 90 days. Technologies embedded in the home include low-voltage lighting, electric heat pumps, and battery storage. The roof-mounted photovoltaic solar array claims to produce enough electricity to offset its initial embodied carbon within 16 years, ultimately becoming net-environmentally positive.
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