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TOP STORIES
South Africa’s treasury proposes more than tripling carbon tax rate once climate law is finalised
South Africa’s treasury on Wednesday proposed increasing the national carbon tax rate from 190 rand to 640 rand ($33.86) per tonne of carbon dioxide equivalent after the country’s new climate change bill comes into effect.
FEATURE: EU industries want policy clarity, finance to help meet Green Deal goals
Some of the EU’s biggest polluting sectors say they are on board with cutting the bloc’s emissions by 90% by 2040 but warn it will not happen without the policy and financial incentives to maintain their global competitiveness.
VOLUNTARY
US market watchdog challenged regarding extent of regulation over voluntary carbon market
Dozens of green groups, think tanks, and industry associations submitted feedback in response to the US Commodity Futures Trading Commission (CFTC)’s guidelines on voluntary carbon credit trading, of which commentators varied in degrees to which the CFTC can establish standards regarding underlying carbon credits in derivatives contracts.
Article 6.2 carbon deals gathering pace despite setback in Dubai
Bilateral sovereign carbon credit trade is rolling forward despite the unravelling of Article 6 negotiations at COP28, a webinar heard Wednesday.
California bill addressing “junk” voluntary carbon credits resurfaces
A Senate bill that looks to tighten regulations on the issuance and sale of carbon offsets, which was vetoed last year, has resurfaced in the California legislature.
Microsoft buys voluntary carbon removals from Kenyan agroforestry project
Microsoft has signed an offtake agreement for 350,000 tonnes of voluntary Carbon Dioxide Removal (CDR) credits over six years from an agroforestry project in Kenya – the company’s second deal this month.
Major bank sets capitals markets emissions targets
A large global bank has become one of the first to set goals for the emissions of its capital markets activities, it said Wednesday.
Improved forest management methodologies present high risk of over-crediting, says think tank
Several improved forest management (IFM) methodologies present a high risk of overstating emissions impacts, according to factsheets released Wednesday alongside a new set of carbon credit quality scores by a German think tank in partnership with NGOs.
Gold Standard expands voluntary soil carbon crediting scope
Gold Standard has epanded activities under its soil carbon methodology, announcing a new module for zero tillage alongside consultations for cover crops and managed pastures, in what will see the scope of projects eligible for crediting increase.
Compliance markets will bring guardrails, scale to voluntary carbon as the two converge -experts
The regulatory backbone of compliance mechanisms will help to support and scale the voluntary carbon market (VCM) as the two increasingly overlap, with buyers moving away from individual project assessment to rely instead on the oversight of schemes like CORSIA and Article 6 as a benchmark for credit quality, experts told a webinar Wednesday.
Asian forest fund makes first investment in Thai peatland restoration project
Forestry asset manager New Forests on Thursday announced it had made its first investment from its Tropical Asia Forest Fund 2 (TAFF2) by establishing a peatland conservation and restoration project in Thailand that could generate around 500,000 carbon credits per year.
Clean steam: US-based startup raises $21 mln towards industrial decarbonisation
A US-based startup that decarbonises industrial steam production has raised $21 million in Series A financing.
Nature-based carbon project developer raises capital to expand with smallholders
An India-based developer of regenerative agriculture voluntary carbon projects with smallholder farmers has raised a Series A round to further expand its global footprint and bolster its technology offering.
EMEA
Norway’s appetite for Arctic fossil fuels a climate risk for the EU, says report
The EU should resist Norway’s push for more Arctic oil and gas and focus on clean energy, according to a report published Wednesday.
Expert group calls on Denmark to set hefty carbon tax on farmers
Denmark has been advised by a government-appointed expert group to impose a carbon tax on farmers as part of its efforts to meet national emissions reductions objectives and comply with EU climate commitments.
Clean investments must double for EU to meet its 2030 climate targets -research
Investment in the clean transition must reach €813 billion a year this decade – double the amount spent in 2022 – if the EU is to meet its 2030 climate target and ensure the European Green Deal is a success, according to the first comprehensive analysis on the bloc’s climate investments.
Hundreds of green groups urge EU, G7 to close Russian energy sanction loopholes
Nearly 300 European, international, and Ukrainian NGOs have written to the leaders of the EU and G7, urging them to tighten their control over Russia’s fossil fuel exports.
Next Commission needs to set up “Juncker plan on steroids” for green investments -top EU climate official
The next European Commission term should unleash “a Juncker plan on steroids” to spur on climate investment, the Commission’s top climate official said in Brussels on Wednesday.
Researchers call for voluntary forest carbon credits to be included in UK ETS
A policy paper has called for the UK to include voluntary carbon credits issued under the Woodland Carbon Code (WCC) as part of its domestic compliance carbon market.
UK quits Energy Charter Treaty following failed attempts at modernisation
The UK is quitting the Energy Charter Treaty (ECT), following a growing number of EU countries that have left the agreement after years of protracted negotiations failed to reform it to support the transition to net zero emissions, the Department for Energy Security and Net Zero (DESNZ) announced Thursday.
Euro Markets: EUAs post small gain but sentiment is flat after position data shows little change from funds
EU carbon prices staged a slow and shallow rally on Wednesday afternoon after early weakness, ending the day modestly higher as the market digested weekly Commitment of Traders data that showed little change in speculative traders’ positions, leaving bulls and bears lacking strong support for their preferred price direction.
ASIA PACIFIC
Rising emissions leaves China way off track against 2025 climate targets -report
China needs to cut emissions by at least 4% to meet its carbon intensity targets, given an increase in last year’s CO2 output due to continued demand for coal-fired power, a report has found.
NZ Market: NZU price falls 4% amid mass selling
The NZU price dropped NZ$2.65 on Wednesday, amid mass selling that market participants blamed on an overall weakness in the market.
Massive LNG project will not be getting special treatment under Australia’s Safeguard Mechanism, govt says
The Australian government has rejected claims it is changing the rules under the Safeguard Mechanism to allow higher emissions from Santos’ controversial Barossa LNG project, after a video clip from Senate estimates circulated social media last week.
Australian gas major sees CCS covering most future emissions
Australia’s second largest oil and gas company said Wednesday it sees CCS as the main way forward to control its carbon emissions, while committing to closer monitoring of its Scope 3 emissions.
Senior offset sourcing specialist leaves South Pole for Sydney competitor
A senior carbon and biodiversity sourcing specialist has left South Pole to join a rival project developer.
Australia’s mining giants take different paths to clean steel
Australia’s two largest iron ore miners have disparate views on the green transition of the steel industry their commodity supplies, reports released this week showed.
Taiwanese emitters with SBTi-aligned plans may be levied less for emissions -minister
Taiwanese emitters are likely to enjoy special discounts if they propose Science-Based Targets initiative (SBTi)-aligned emissions reduction plans under the upcoming carbon levy scheme, which could see more clarity by the end of this quarter.
AMERICAS
Maryland congressman introduces legislation for state cap-and-invest programme
A Democratic delegate in Maryland’s lower house introduced legislation earlier this month that would establish a cap-and-invest programme in the RGGI-participating state.
AVIATION/SHIPPING
Japanese trading house to subsidise low-friction paint for maritime decarbonisation
A major trading house in Japan has launched a performance-based payment scheme that encourages the use of anti-fouling paint for ship bottoms with the view of driving down emissions in the shipping sector, it announced Wednesday.
BIODIVERSITY (FREE TO READ)
Colombia picks Cali to host COP16
The Convention on Biological Diversity’s COP16 in October and November this year will take place in Cali, capital of Colombia’s Pacific region, President Gustavo Petro has announced.
RePlanet’s five biodiversity credit projects could generate “$10 mln” each
RePlanet is partnering with other companies on five biodiversity credit initiatives around the world that could each generate “$10 million or more”, via an impending blockchain process, an executive has estimated.
Bezos Earth Fund allocates $5 mln for conservation efforts in the Congo Basin
The Bezos Earth Fund will pledge $5 million to the Jane Goodall Institute (JGI) to support its conservation efforts in the Congo Basin, the US-based organisation has announced.
Brazilian beef driving illegal deforestation in Cerrado region, NGO finds
Beef production by Brazil’s three biggest meatpackers is fuelling illegal deforestation in the Cerrado region, with an area bigger than Chicago cleared between 2008 and 2019 within ranches supplying the companies, an NGO investigation has found.
UK biodiversity net gain tweak “dramatically undermines” local authorities with nature ambitions
An adjustment by the UK government to the biodiversity net gain (BNG) legislation, meaning local authorities need to justify increasing their minimum net biodiversity improvement level, undermines nature restoration efforts, a consultant has said.
Mid-term evaluation of EU’s post-Covid finance facility finds obstacles to ‘green recovery’
Numerous obstacles persist on the way to a green recovery across the EU, according to the European Commission’s mid-term evaluation of the financial tools put in place after the Covid-19 pandemic.
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Premium job listings
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CONFERENCES
Carbon Forward Asia – March 7-8, Singapore and online: Our conference is anchored on relevant, current content shining the spotlight on opportunities and risks in the Asia-Pacific region. Organised by Carbon Pulse, Redshaw Advisors, and others working in the sector, the agenda will delve into pressing topics with regional and international leaders. With half of all ASEAN countries in the process of establishing domestic carbon markets, we’ll examine at the region’s emerging markets – both compliance and voluntary. And as China prepares to relaunch its CCER offset scheme, we’ll look at domestic demand and possible impacts on voluntary projects. The event will discuss what impact the EU’s Carbon Border Adjustment Mechanism (CBAM) will have. (On Mar. 6 there’s a separate CBAM workshop comprising everything you need to know). Conference attendees will also hear about CORSIA, Article 6, COP29, removals, nature-based solutions, and so much more. Carbon Forward Asia is also a meeting hub for corporates, investors, financiers, bankers, brokers, representatives from industrials, shipping and aviation, oil and gas, utilities, energy, traders, regulators and policy makers, carbon market analysts, project developers, exchanges, rating agencies, and NGOs. Register now!
North American Carbon World (NACW) 2024 – March 19-21, San Francisco: Attend NACW 2024 to learn, collaborate, and network with the North American carbon community and provide a stronger, unified force in advancing climate solutions. Hosted by the Climate Action Reserve, NACW will dive into major new policies, innovations, and developments that will shape and scale carbon markets and climate solutions with integrity and ambition. In addition to outstanding speakers, discussions, and insights, NACW provides premier networking opportunities with an active and engaged audience of leading climate and carbon professionals from all sectors of the economy. www.nacwconference.com
European Climate Summit – April 16-18, Florence: To kick off its annual regional climate summit series this year, IETA looks forward to welcoming delegates to its flagship ECS2024 event, taking place in Italy. ECS comes at a key inflection point for the region’s carbon market. How will the European carbon market evolve in its next phase, which starts in 2031? Around the world, carbon markets are emerging at the fastest ever pace, with new emissions trading systems being developed from Brazil to Vietnam. More markets may mean more opportunities for international cooperation and linking, and some of these could come to Europe. The health of the voluntary carbon market is also a hot topic this year, as the market works to overcome challenges. Environmental integrity and robust quality assurance are at the top of everyone’s mind, and IETA’s ECS2024 will address these issues as well. To register, simply click HERE to join as a delegate. In-person event.
Next steps for the UK Emissions Trading Scheme – April 22, Online: Hosted by Westminster Energy, Environment & Transport Forum, stakeholders and policymakers will explore priorities for implementation and maximising the carbon market’s contribution toward the UK’s net zero strategy. Discussion will consider policy priorities, challenges for industries, and plans to expand the scheme to include domestic shipping and energy from waste. Sessions will also explore the auction reserve price, the forthcoming CBAM, and strategies to enhance the UK ETS’s efficacy while mitigating negative impacts. Book your place
Carbon Forward North America – June 11-12, Toronto: Join us in the Great White North to hear about the evolving carbon pricing and climate policy landscape in North America. Whether you are an emitter, investor, developer, or a new participant in any of the continent’s carbon markets – compliance or voluntary – Carbon Forward North America offers you the opportunity to gain knowledge on both present and future policy developments and market opportunities. Explore the chance to meet the right people or source the right solutions to help you enhance your business prospects or minimise your risk. Come meet the region’s world-leading carbon market experts, compliance players, government officials, investors, project developers, analysts, brokers, and other stakeholders. Agenda to be released soon. To express an interest in speaking or sponsoring, please email michelle@carbon-forward.com
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BITE-SIZED UPDATES FROM AROUND THE WORLD
EMEA
Gas going – Europe’s natural gas consumption has fallen by 20% since the Russian invasion of Ukraine, helped by improvements in energy efficiency and accelerated renewables deployment, according to the Institute for Energy Economics and Financial Analysis. The drop in consumption has been led by Germany, Italy, and the UK, IEEFA says, and the region is set to reach peak gas consumption in 2025 as a result. But while the reduction has been driven by significant falls in pipeline gas imports, IEEFA notes that LNG shipments have increased, with cargoes of Russian chilled fuel up by 11% between 2021 and 2023. Europe is also building a large number of LNG import terminals: more than 53 bcm of capacity has been installed since February 2022, and a further 94 bcm is planned to be built by 2030, IEEFA warns.
Just Transition Fund – The creation of a new European fund to support coal regions in the energy transition may look positive for disadvantaged areas but the administration is actually complex, costly, and threatens its effective use, warns a new Czech study based on interviews with officials. The Czech Republic is now drawing money from the fund, but faces difficulties as it may not be used effectively due to strict deadlines and limited national capacity, warns the European policy institute EUROPEUM study, Euractiv reports. JTF funds must be allocated by the end of 2026. On a positive note, officials pointed out that the fund had attracted above-average interest from the Czech regions concerned. The mere fact that money was earmarked for them was said to have activated the regions and encouraged them to discuss their development priorities.
Forging partnerships – France and the UAE have entered into a partnership to establish a bilateral climate investment platform, which aims to promote and facilitate investments in the energy transition. The partnership will enable both French and Emirati investors to explore and capitalise mutual interests in these sectors, with a particular focus on the decarbonisation of hard-to-abate industries. The platform aims to attract additional investment partners in future too. At the same signing ceremony, TotalEnergies and Masdar also signed an MoU to work towards the development of solar and wind energy projects in Central Asia and Africa. (Emirates News Agency)
U-turn – The French government has U-turned on plans to remove subsidies for fossil fuels in the agricultural industry, such as those which power agricultural machinery like tractors, Climate Change News reports. The move comes in direct opposition to France’s former minister for the energy transition, Agnès Pannier-Runacher, saying she would be “very happy” to support a Dutch initiative to remove subsidies for fossil fuels, at COP28 last year. France’s move could send a signal that it’s okay to capitulate to social pressure when it comes to difficult choices around fossil fuel reform, and could spur on other groups to push back against similar reforms, said a Sussex University professor. For example, farmers in Germany and Lithuania are also currently fighting plans to remove their fuel subsidies.
Fossil fuelled pensions – £88 bln of UK pension savers’ money is invested in fossil fuels, and £300 bln is invested in companies with a high risk of deforestation, destroying nature, and jeopardising lives and livelihoods, according to a report by the campaign group Make My Money Matter. UK pensions are linked to 330 Mt of CO2 emissions every year, more than the country’s carbon footprint. Instead, the UK pensions industry could invest £1.2 tln into renewable energy and climate solutions by 2035, it said. Only three of the UK pension providers analysed – Aviva, Legal & General, and Nest – were found to have adequate climate plans, while 13 providers – including Standard Life, Royal London, and Prudential – had plans deemed inadequate. However, all the providers were found to have inadequate or poor plans for reducing finance of fossil fuels and deforestation and land use.
Energy tax review – The Belgian presidency’s of the Council, representing EU member states, is planning to break a deadlock on a directive’s revision to ensure that minimum tax thresholds for decarbonised energies are lower than those applied to fossil fuels. Currently stuck because of the unanimity rule applying to tax matters, the process may unblock thanks to a proposal bringing further exemptions from the directive. The document, seen by Euractiv, proposes to exclude wood and charcoal from the scope of the directive, and to be stricter on installations using peat and peat litter as fuel. As a result, only plants with a capacity of less than 7.5 MW will be exempt from the thresholds, as opposed to the 10 MW previously proposed by Spain. Municipal waste used as fuel would also be excluded.
Hydrogen, not worth the hassle – Geert van Poelvoorde, head of ArcelorMittal’s European operations, told Dutch-language business magazine Trends, that his company cannot operate its European plants using green hydrogen, despite being granted billions of euros of EU subsidies to install equipment to do so, because the resulting green steel would be unable to compete on international markets. Instead, the Luxembourg-based steelmaker appears to be intending to use fossil gas instead of hydrogen indefinitely in its proposed “green steel” plants — or it may even delay the construction of subsidised “direct-reduced iron” (DRI) manufacturing units in Europe in favour of importing green hydrogen-derived DRI from abroad, Hydrogen Insight reports.
Hydrogen purchase – Germany is to provide up to €3.53 bln from 2027-2036 to procure hydrogen and hydrogen-based derivatives from different regions, the economy ministry has said. The country is launching a “double auction model” whereby hydrogen is purchased through a first auction on global markets, with suppliers offering the lowest price entering long-term contracts. The hydrogen or its derivatives are then sold on through a second auction at lower prices to regional buyers in Europe. The government provides funds to pay the price difference. The German ministry estimates that demand for the fuel will reach between 95 and 130 TWh by 2030, primarily to decarbonise industry production. (Clean Energy Wire)
Hydrogen, but for crops – Uganda has signed a joint development agreement with two developers, Kenya-based Industrial Promotion Services (an arm of the Aga Khan Fund for Economic Development) and Norway-headquartered green energy firm Westgass, to create the country’s first hydrogen-based fertilizer project. The project, which will reportedly cost $400 mln, has secured a convertible loan from Norwegian state-owned Norfund and a grant from development agency Norad. The project aims to produce 200,000 tonnes of mineral fertilisers a year in Karuma to displace Uganda’s current imports, which are highly vulnerable to volatile global gas prices. The developers plan to produce green hydrogen before processing it into ammonia, then calcium ammonium nitrate, and ultimately nitrogen-phosphorus-potassium fertilisers. It remains unclear whether Uganda intends to use green fertilisers for domestic use only, or also to export them to global markets.
Collective resistance – Residents of the Grunheide municipality near Berlin have rejected the planned expansion of the local Tesla factory in a non-binding referendum, with 65% of the 5,000 referendum participants voting ”no” to the company’s plans to increase the size of its factory, reported public broadcaster rbb. Tesla wishes to expand the size of its factory by 170 hectares to build a train station, warehouses, and other infrastructure. The local mayor said the vote’s result would mean that the current development plan cannot be adopted in its present form and needs to be discussed at an upcoming local council meeting in March.
ASIA PACIFIC
Staggering – Rooftop solar PV in Australia will overtake the country’s entire electricity demand in coming decades, according to a report by Green Energy Markets, the ABC reports. Almost 20 GW of small-scale solar has been installed across Australia’s National Electricity Market (NEM), which covers the country’s east and southern states and services around 10 mln customers, with the report predicting that this will more than triple by 2054, even by conservative assumptions. Green Energy Markets said the rapid uptake in rooftop solar across homes and factories would be a key element in government efforts to decarbonise the economy. The authors described the numbers as ‘staggering’ and that they went well beyond the levels of installed fossil fuel generation capacity in the NEM of around 41 GW. The combined rooftop solar capacity will rise to 66 GW over the next three decades, even under the most pessimistic scenario. An aggressive decarbonisation strategy from government would take this forecast up to 100 GW over the same period.
Wood-derived ethanol – Japanese firm Rengo will soon begin using construction waste to produce raw material to be used in Sustainable Aviation Fuel (SAF), Nikkei reported. The cardboard maker plans to invest $133 mln in ethanol production for SAF. The firm will operate the business through Taiko Paper Manufacturers, its subsidiary, and will install facilities for saccharification, fermentation, and distillation necessary to produce ethanol. It plans to produce 20,000 kilolitres of ethanol derived from construction waste from 2027, and sell it to wholesalers of oil and other companies that produce SAF. Other paper manufacturers such as Oji Holdings and Nippon Paper Industries are also working on plans to produce bioethanol derived from wood to be used as SAF feedstock.
Blended finance – Indian government-owned Power Finance Corporation (PFC) has signed an MoU with the state government of Goa in order to fund the state’s green energy ambitions through a blended finance facility, Mint reported. PFC will fund climate-related projects in the state including initiatives in renewable energy, green hydrogen, electric vehicles, converting waste to wealth, and nature-based solutions. Meanwhile, Goa government will facilitate the implementation of those projects.
Under my watch – A new database released by the Malaysian climate watchdog RimbaWatch has found that around 10 bln tonnes of CO2e will be released into the atmosphere if 70 prospective fossil fuel reserves in Malaysia, Singapore, and Brunei were fully exploited, Eco-Business reported. The database tracks emissions from fossil fuel extraction, power plants, transportation, steel, and cement in Southeast Asia. It found that if the planned extraction projects from these three countries were to be fully exploited, it would need about 9% of the global carbon budget to keep global warming within safe limits. RimbaWatch uses annual and lifespan scope 1, 2, and 3 emissions from public company data to populate the database, called the Future Emissions Database. Accuracy of the emissions depend upon companies’ disclosures and other public information. The database currently covers Malaysia, Singapore, and Brunei, but the non-profit plans to include other Southeast Asian countries in a final version.
AMERICAS
EPA arguments – The US Supreme Court heard oral arguments Wednesday on the case of Ohio vs. EPA, which involves a request by petitioners including a handful of Republican states, natural gas pipeline companies, and industry groups for the court to issue a stay – essentially a pause pending litigation – on the EPA’s Good Neighbor Plan regulations on interstate ozone pollution. Legal experts have told Carbon Pulse that the case may set precedent that could stifle federal environmental efforts if it were to rule in favour of the petitioners. During Wednesday’s arguments, the court’s conservative supermajority heavily pressed the EPA’s representatives on the programme’s initial design, whether the programme can continue only in part (considering that its implementation is already stayed in a dozen states), and emphasised the cost involved for companies to get into compliance, which would be lost if that regulation were to be later repealed. On the other hand, the court’s liberal minority questioned the urgency of the emergency stay applications and the bypassing of an expedited briefing in a lower court, as well as expressed concerns about what kind of challenges might be brought up to the Supreme Court in the future if the petitioners’ stay request was granted. (E&E News)
IRA investment report – Although the Inflation Reduction Act (IRA) has helped spur electric vehicle sales and boost clean energy generation and storage in the US, challenges remain if the law it to achieve its full potential, according to a report published Wednesday. The report found that zero emission vehicle (ZEV) sales can remain on track to meet the IRA’s goal of a 40% emissions reductions goal from 2005 levels by 2030, even if annual sales growth slows in 2024 —provided it stays in the 30-40% range for annual growth. On the other hand, even though investment in utility-scale clean electricity generation and storage capacity reached record levels in 2023, it is at risk of falling behind this goal. While the IRA has made renewable electricity cost competitive with coal and natural gas, significant non-cost barriers to deployment remain, including siting and permitting delays, backlogged grid interconnect queues, and supply chain challenges, the report found. It was published jointly by research firm Rhodium Group, the Massachusetts Institute of Technology’s Center for Energy and Environmental Policy Research, Princeton University’s Zero Carbon Energy Systems Research and Optimization Laboratory, and energy and climate policy think tank Energy Innovation.
Flying green – The US Federal Aviation Administration (FAA) announced on Tuesday that it has released a final rule to reduce carbon pollution emitted by most large airplanes flying in the US airspace. The rule mandates incorporating fuel efficient technologies in airplanes manufactured after Jan. 1, 2028, as well as in subsonic jet airplanes and large turboprop and propeller airplanes that have not been certified yet. Some commercial airplanes that will be required to meet the standards include the Boeing 777-X and newer versions of the Boeing 787 Dreamliner, the Airbus A330-neo, business jets such as the Cessna Citation, and civil turboprop airplanes including the ATR 72 and the Viking Air Limited Q400. The rule does not apply to airplanes currently in service. These types of civil aircraft are responsible for 9% of domestic transportation emissions and 2% of total US CO2 pollution, FAA said.
Sued for denial – The city of Chicago on Tuesday sued six oil companies – BP, Chevron, ConocoPhillips, Exxon Mobil, Phillips 66, and Shell – and the fossil fuel trade association American Petroleum Institute (API), alleging that they funded and planned a climate change denial campaign that directly impacted the residents of the city. The complaint calls out the firms for misleading the public about the impact of their products, including unsafe summer temperatures, an increase in extreme weather, shoreline erosion, and susceptibility to disasters such as flash flooding in basements on the city’s West Side. Additionally, the lawsuit accuses API of creating front groups “to promote climate disinformation and advocacy from a purportedly objective source.” The municipality said that the group’s agenda to spread climate denial has cost the city nearly $200 mln in climate mitigation and response projects in low-income communities.
New Mexico’s clean fuel standard – Governor of New Mexico Michelle Lujan Grisham (D) last week signed House Bill 41 into law, enacting the Clean Transportation Fuel Standard (CTFS) in the state, Vinson & Elkins reported. CTFS requires transportation fuel producers and suppliers to achieve a 30% decline in CI relative to 2018 levels by 2040 by authorising the New Mexico Environmental Improvement Board to enforce the programme rules no later than July 1, 2026, with an initial target of 20% CI reduction below the baseline by 2030. The passage of the bill through the New Mexico legislature marks a milestone for lawmakers who have been pushing for clean fuel regulation for years, following previous failed attempts to bring similar initiatives to fruition.
APCR rule adopted – The Washington Department of Ecology (ECY) announced Wednesday that it has adopted a new rule – which has been in effect since June 8, 2023, on an emergency basis – on the state’s Allowance Price Containment Reserve (APCR) auctions. Implemented in order to clarify two aspects of the state’s cap-and-invest programme under the Climate Commitment Act (CCA), the emergency rule was reinstated twice, in September and January, and was extended until May 3, 2024. It outlines that existing holding limits that applied to allowances assigned with a vintage year, would also apply to “vintage less” permits purchased from APCR auctions, and mandates that volumes purchased at reserve sales had to be deposited directly into compliance accounts. The rule will take effect on Mar. 23, 2024.
Louisiana lawsuit – Louisiana environmental groups filed a legal challenge Tuesday to the EPA’s decision to make the state the primary regulator of carbon capture projects planned by the oil and gas industry, reported Louisiana Record. More specifically, the Deep South Center for Environmental Justice, Healthy Gulf, and the Alliance for Affordable Energy filed the petition challenging the federal permitting rule at the Fifth Circuit Court of Appeals. These groups claim the state doesn’t have a sufficiently strong environmental record to oversee such projects and, therefore, may not adequately foresee potential threats posed by such projects to communities in the state.
Jari Para REDD – Members of the Nova Vida community, located in the municipality of Almerim in Para, Brazil, never received payment for their participation in the Jari Para REDD (VCS 1811) project, reported De Olho Nos Ruralistas Monday. Community members expected to receive a payment of about R$5,000 ($1000) in exchange for a commitment to use up to 20% of their land to grow crops, with the remaining 80% of land preserved in generation of carbon credits, the residents stated. None of the residents had a copy of documents signed from the first and only meeting with project developer Jari Celulose in 2019. Community members maintained that they were offered cash if they chose to participate, while the company claimed it did not sign a contract with the community and participation was voluntary. The news outlet also reported that in 2018, Jari Celulose representatives misled members of neighbouring community Morada Nova to a workshop on raising hens, of which residents learned only years later that the activity was classified as community training within the Jari Para REDD project. The project has been suspended by Verra as of Mar. 10, 2023 as a result of land-grabbing claims, which the company denies.
INTERNATIONAL
Hydrogen valley – Australian hydrogen company Infinite Green Energy has entered into a binding joint development agreement (JDA) with Switzerland’s Axpo Holding to develop the commercial-scale Valle Peligna Hydrogen Project in Abruzzo Italy, the company announced. The agreement describes the strategic partnership between the two companies, including key terms and milestones to successfully reach a final investment decision, the company said. The project is part of the Italian government’s Hydrogen Vally strategy, which aims to enhance brownfield industrial sites. The green hydrogen project is expected to produce 12 tonnes of hydrogen per day for hard-to-abate and mobility sectors. It will consist of a 30 MW electrolyser, powered by a 45 MW solar plant, making it one Italy’s biggest commercial-scale renewable hydrogen plants. The project is expected to be operational by 2025.
PPCA partnership – Climate NGO Transition Zero is partnering with the Powering Past Coal Alliance (PPCA) to provide systems modelling data and educational support to the PPCA during this critical year for NDCs. This will include hosting workshops and webinars for PPCA stakeholders and demonstrating how TransitionZero’s suite of energy systems modelling tools can help answer urgent questions about the energy transition. The partnership will also leverage TransitionZero’s expertise in modelling issues related to transmission and the financing of early coal plant retirement. PCCA member countries are committed to phasing out existing unabated coal power generation and retain a moratorium on any new coal power stations without operational carbon capture and storage, within their jurisdictions.
Funding CO2 removal initiatives – Nigerian IT services firm Glemad on Wednesday announced that it will allocate 0.1% of its revenue towards carbon removal efforts by partnering with Stripe Climate, a coalition that aggregates funds from businesses to invest in global carbon removal solutions. Glemad and other coalition members will support the removal of 322 tonnes of CO2 annually through Stripe’s partnership with direct air capture firm Climeworks.
VOLUNTARY
Carbon-negative concrete – CarbonMeta Technologies has won a contract with Saudi Investment Recycling Company (SIRC) to develop and commercialize a carbon-negative concrete made from industrial, construction demolition waste, and mining waste for the production of sustainable construction projects in Saudi Arabia. SIRC plans to attract over $13 bln in foreign direct investment and contribute over $30 bln to Saudi GDP by 2035, by investing in key technologies that can reduce CO2 emissions, recycle solid waste, and promote a circular economy in Saudi Arabia. SIRC is a wholly owned subsidiary of the Saudi Public Investment Fund (PIF) of Saudi Arabia. CarbonMeta will launch its pilot plant in March 2024.
INVESTMENT
Navigating through governments – Overture, an early stage climate tech venture capital fund, announced that it has closed its $60 mln debut fund, reported Fortune. The US-based fund focuses on supporting startups through the bureaucracy of state and federal governments, as co-founders Brandon Hurlbrut and Shomik Dutta initially met working on Obama’s 2008 presidential campaign and would go on to work in the White House under his administration. Funders include Kiran Bhatraju, cofounder of climate software company Arcadia; Boundary Stone, the fund’s government affairs partner; and Overture’s cofounders themselves. Portfolio companies span across the sectors of carbon, energy, and heavy industry.
AND FINALLY…
In memoriam – Samuele Landi, a former adviser to UAE-based NBS project developer Blue Carbon and an Italian entrepreneur, was tragically killed during a severe storm in the Persian Gulf earlier this month, according to media reports. Landi, who had taken up residence on a barge in international waters off Dubai to live as a “seasteader” seeking freedom, perished when a wave destroyed his floating home, also claiming the lives of two others and leaving two survivors. Prior to his unconventional life at sea, Landi fled Italy for Dubai to escape an eight-year prison sentence for the fraudulent bankruptcy of his company, Eutelia, all while asserting his innocence against the charges. Despite his controversial past, Landi invested significantly in his maritime lifestyle and was the subject of a documentary by British filmmaker Oswald Horowitz. Despite having no NBS experience, Landi was appointed to advise Blue Carbon, which is chaired by a member of Dubai’s royal family and which has been on a deal-making spree with a multitude of governments over the past couple of years.
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