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TOP STORY

UN carbon markets body to start work on Article 6 crediting tools, present wider package by COP29

Members of a UN body tasked with shaping carbon crediting under Article 6 will begin work immediately on several tools, including on baselines, additionality, and leakage, and open a consultation on methodological elements, in a bid to constructively push ahead on operationalising the international mechanism.

VOLUNTARY

Banks advance work on transition credits to accelerate, bridge financing gap in coal plant decommissioning

HSBC and Standard Chartered are working to develop a novel approach aimed at financing and accelerating the phaseout of coal power plants by introducing transition carbon credits, advancing existing efforts by governments and other private sector players.

February voluntary carbon credit retirements keep market on track to reach 233 mln this year

Retirements of credits from the four largest voluntary carbon registries reached nearly 18 million last month and were almost equal to issuances in February, maintaining the momentum seen in January, data from the Carbon Pulse VCM Portal shows.

Voluntary carbon project developer launches large-scale electric cooking activity in Africa

A voluntary carbon developer, fresh from issuing Sub-Saharan Africa’s first ever-green bond designated for the cookstove market, has seen its electric clean cooking project listed by Gold Standard, the company announced Friday.

Air cargo group launches voluntary carbon offsetting platform

A new portal enabling aviation industry firms and individuals to purchase voluntary credits to offset carbon emissions is now live, a spokesperson for The International Air Cargo Association (TIACA) confirmed to Carbon Pulse.

Verra consults on voluntary carbon capture and storage crediting methodology

Voluntary carbon market standard Verra has opened a public consultation on draft tools and modules intended for use under its methodology for carbon capture and storage (CCS), it announced Friday.

Global steelmaker developing voluntary carbon offset strategy

One of the world’s largest steelmakers is developing a strategy to offset its residual emissions through the use of voluntary carbon credits.

Scientists urge halt on deep-ocean seaweed dumping for climate change mitigation

Countries should impose an immediate moratorium on the sinking of seaweed into the deep ocean as a method of carbon sequestration, researchers have urged, highlighting the lack of scientific evidence supporting its effectiveness and raising concerns over potential environmental, economic, and ethical consequences.

EMEA

EU breaks deadlock on Energy Charter Treaty exit

The EU has broken the deadlock on its plans for a coordinated withdrawal from the Energy Charter Treaty (ECT), an international trade agreement denounced by climate activists for protecting fossil fuel investments and hampering the transition to net-zero emissions.

UK ETS supply adjustment mechanism could be in place from 2026 -official

Britain is aiming to introduce an allowance supply adjustment mechanism (SAM) to its carbon market from 2026, a senior UK government official told Carbon Pulse.

PREVIEW: Transport carbon accounting rules set for key EU vote

Lawmakers in the European Parliament are voting on Monday a proposal to harmonise the way carbon emissions from transport are counted across the EU, with debates focusing on the choice of methodology and whether to include emissions from international freight.

Czech utility planning to close two lignite units in early 2025 -media

A Czech utility is considering shutting two lignite-fired power plants in the Czechia next year, citing the growing uncompetitiveness of the fuel, according to media reports on Friday.

Euro Markets: EUAs post first weekly gain of 2024 as prices find support at technical level

European carbon prices bounced off a key support level on Friday morning with short-positioned traders seen covering positions ahead of the weekend, as the market appeared set to post the first weekly gain of 2024.

AMERICAS

West Virginia bill aimed at taxing voluntary carbon offset buyers stalls in Senate

A West Virginia Senate bill looking to tax buyers of nature-based carbon offsets generated in the state failed to be approved by the upper chamber on Wednesday following debate over property rights and carbon credit speculation.

ExxonMobil sees support for lawsuit against investor-driven climate action

Two business advocacy groups filed an amicus brief Thursday in support of oil giant ExxonMobil’s lawsuit against shareholders who called for the firm to set a Scope 3 emissions target, in a push for federal courts to set a precedent regarding shareholder advocacy.

Enhanced weathering shows CO2 removal, crop yield boost in US farmland study

Crushed silicate rock can sequester as much as four tonnes of CO2 per hectare per year and improve crop yields, according to a four-year field trial on US agricultural lands.

Alberta TIER market credit prices decline in February ahead of retirement season

Spot credit prices under the Alberta Technology Innovation and Emission Reduction (TIER) programme dropped in February ahead of retirement season for 2023 compliance, with the provincial government expecting maximum offset usage, according to a report published late Thursday.

Ontario quadruples investment in provincial forest biomass programme

Ontario is providing an additional C$60 million ($43.3 mln) for its provincial forest biomass programme, it announced Friday, while also revealing the recipients of the latest tranche of project funding.

Entities add CCAs, speculators continue profit-taking run in RGGI according to latest US CFTC data

Emitters and speculators added to California Carbon Allowance (CCA) net holdings, closing out of Auction Clearing Price (ACP) contracts post the first permit sale of the year, while financial players continued their profit-taking run in RGGI Allowances (RGAs), weekly data from the US Commodities and Futures Trading Commission (CFTC) showed on Friday.

ASIA PACIFIC

Australian trading house begins offering insurance-wrapped voluntary carbon credits

A Sydney-based trading house has secured insurance-backing to underwrite certain voluntary carbon credits on its platform.

Australia Market Roundup: Govt seeks 10 GW of renewables capacity this year, ACCU issuance flat

The federal government is seeking feedback on the design of its Capacity Investment Scheme, which aims to rapidly boost the deployment of large-scale renewable energy and storage, with 10 GW expected to be put out for tender this year.

CN Markets: CEAs climb to four-month high amid healthier liquidity, loftier expectations

The spot price in China’s national emissions trading scheme (ETS) pushed above the $80 yuan ($11.11) mark over the past week on a healthier trading volume, as the outlook appears brighter for the future expansion of the carbon market.

INTERNATIONAL

Global energy-related CO2 emissions up, but lower than expected -IEA

The world’s energy-related CO2 emissions rose 1.1%, or 400 million tonnes, to hit new highs in 2023, but would have been even higher were it not for rapid uptake of cleaner energy, whose installation rose 75% over 2022 alone to 540 gigawatts, the International Energy Agency (IEA) said Friday.

Mix of rapid acceleration and “handbrake” risks seen on road ahead for global energy transition -report

A new report has shone a light on the complex road ahead for the global energy transition, revealing a dual narrative of rapid acceleration and significant challenges in the form of various “handbrakes”.

BIODIVERSITY (FREE TO READ)

UN Environment Assembly takes shy steps on biodiversity at first meeting since GBF agreement

The 6th UN Environment Assembly (UNEA) wrapped up with the approval of 15 resolutions – including the first-ever on land degradation – and calls for expediting efforts towards achieving global biodiversity targets, though disagreements frustrated hopes for bolder commitments.

WTO meeting fails to seal deal on harmful fisheries subsidies

The latest World Trade Organisation (WTO) negotiations failed to reach an agreement on strengthening rules to curb harmful fisheries subsidies in what observers say is a major setback for marine biodiversity conservation efforts.

International Big Cat Alliance set for launch after India cabinet approval

India’s cabinet this week approved the establishment of the International Big Cat Alliance (IBCA), first announced in 2023.

UNEP warns surging natural resource forecast could derail biodiversity targets

Extraction of natural resources, including crops, wood, and minerals, is set to increase by 60% by 2060, with devastating effects on biodiversity, unless bold actions are taken, a report has found.

RepRisk to expand biodiversity risk tool to include power sector

Swiss data company RepRisk is working on widening the coverage of a tool, which shows the proximity of companies to biodiversity-sensitive sites, to include firms in the power sector, an executive has said.

Deep sea mining has ‘poor’ market prospects, report warns

Investors should think twice before backing the deep sea mining (DSM) industry due to high financial risks related to technological challenges and poor market opportunities, a newly released report has found.

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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

SCIENCE & TECH

Heated debate – Switzerland’s attempt to explore the possibility of dimming the sun has been dismissed by a UN summit this week, Euronews reports. Solar geoengineering will go no further after a debate at the UN Environment Assembly in Kenya failed to reach a consensus on the issue. Switzerland had suggested creating a UN expert group to study the “risks and opportunities” of solar radiation modification (SRM), a controversial set of technologies aimed at cooling the Earth. There are fears among parties the untested technology could stoke geopolitical tensions or be used by a rogue billionaire.

Winter’s warmth – The US experienced its warmest meteorological winter on record, with all continental states seeing temperatures above historical averages, according to preliminary data from AccuWeather. Minnesota, Wisconsin, and Michigan reported their warmest winters ever, with cities like Minneapolis, Milwaukee, Des Moines, and Albany observing mean winter temperatures 8-12 degrees F above normal. The data, comparing the average temperature from Dec. 2023 to Feb. 2024 against records since 1893, suggests El Nino played a significant role in this unusual warmth, particularly affecting the northeast, midwest, and northern plains. This phenomenon, coupled with a warming climate, contributed to drier and milder conditions, resulting in minimal snowfall and a substantial snowfall deficit in cities like Syracuse and Boston. The Great Lakes also saw a historic low in ice cover. AccuWeather’s long-range forecast had predicted a warmer winter with less snow across many northern US areas.

EMEA

Taxing your time – The EU’s CBAM faces challenges as fewer than 10% of the 20,000 German companies due to report emissions complied with an early reporting deadline, the FT reports. Similar trends were observed in Sweden, with only 11% of anticipated reports were filed. The CBAM requires businesses, particularly in sectors like aluminium, steel, iron, and fertilizers, to report import emissions by January 31. Non-compliance from mid-July could result in fines of €50 per tonne of carbon emissions. Concerns over administrative burdens have intensified, impacting the EU’s competitiveness, while Citi analysts warn of potential cost increases for imports from Russia, Turkey, India, and China. Despite a one-month deadline extension, confusion and uncertainty persist among importers, reflecting the transitional phase of the process. The European Commission reported almost 13,000 submissions by February’s end, with China being a major focus of submitted reports.

German gas transit fees – Germany is coming under pressure to lower the transit fees it charges other EU countries for gas, Euractiv reports. The matter has been raised by Czechia and four other EU countries who claim a surcharge imposed by Berlin in 2022 to finance the construction of new LNG terminals to replace Russian gas is both “unfair” and makes the switch to non-Russian alternatives more expensive. All gas transiting via German pipelines bear the “gas storage neutrality charge” that was initially set at €0.59/MWh in October 2022 and was subsequently raised to reach €1.86 EUR/MWh in January 2024. The matter will be discussed at Monday’s meeting of the EU’s Energy Council, bringing together the bloc’s 27 ministers. Austria, Hungary, Poland, and Slovakia have joined Czechia in the complaint, while the European Commission is also investigating the matter. The German economy and climate ministry said it was in dialogue with the Commission and the EU countries concerned. It stressed, however, that Germany’s rapid decision to build new LNG terminals after Russia’s invasion of Ukraine had “made a decisive contribution to European security of supply and price stabilisation”. Meanwhile, the Austrian government has accepted to cover part of the €200 million needed to build a 40km pipeline linking with the German gas network. The connection should be completed by late 2027, Euractiv reports.

Balkan power – The two entities making up Bosnia and Herzegovina (BiH) – the Federation of Bosnia and Herzegovina and the Republic of Srpska – have agreed to accelerate plans to establish an electricity exchange, reports Balkan Green Energy News.  Petar Dokic, minister of mining and energy of the Republic of Srpska, and Vedran Lakic, minister of energy, mining and industry of the Federation of BiH, vowed to finalise the country’s electricity law, and prioritise the establishment of a power exchange. The effort is supported by an EU project called EU4Energy. BiH is the only country in the Western Balkans and the wider European region which doesn’t yet have an electricity exchange. BiH is part of the Energy Community, an international organisation bringing together the EU and neighbouring countries to create an integrated regional electricity market. Member countries are required to implement EU energy law and produce national climate plans, like EU member states. A decarbonisation roadmap adopted in 2021 outlines the next steps to implement carbon pricing policies in the region and integrate with the EU ETS.

Portuguese grants – The European Commission announced on Friday it had approved a €350 mln Portuguese scheme to support investments in the production of equipment necessary for the transition to a net-zero economy. “The measure will be open to companies producing relevant equipment, namely batteries, solar panels, wind turbines, heat-pumps, electrolysers, equipment for carbon capture usage and storage [as well as] critical raw materials necessary for their production,” the Commission said in a statement. The aid will take the form of direct grants under the EU’s €800 billion Recovery and Resilience Facility (RRF) put together after the Covid-19 outbreak.

ASIA PACIFIC

Shift in focus – Australian state and federal ministers turned their attention to the country’s vast amount of rooftop solar, and other consumer energy resources (CER), at their latest meeting held Friday, Renew Economy reports. The communique following the meeting said the ministers were committed to undertaking reforms through a National Consumer Energy Resources Roadmap that will deliver new consumer protections and allow consumers to export more solar to the grid. The reforms also seek to establish ‘nationally consistent standards’ to optimise key technologies like vehicles-to-grid chargers, as the uptake of EVs picks up. These reforms will contribute to emissions reduction, and broadening access to CER across communities, the communique said.

Setting an example – TWSE, Taiwan’s main stock exchange, has purchased 10,000 international carbon credits from a government-backed carbon marketplace as it aims to set an example for domestic securities firms, according to a statement released Thursday. The purchased credits, generated from GS-verified voluntary projects in six countries, will be used to offset TWSE’s 2023 emissions, the statement said.

Leading the way – Tamil Nadu has become the first Indian state to release a greenhouse gas inventory and pathways to net zero transition, the state government said at the Tamil Nadu Climate Summit on Wednesday. The state government had earlier launched Green Tamil Nadu Mission and Tamil Nadu Coastal Mission which focuses on preserving and restoring coastal ecosystems and will be implemented over the next five years with the finance help from the World Bank. Meanwhile, under the Green Tamil Nadu Mission, a native species tree will be planted for every person who attends the summit to offset CO2 generated by the event, The Times of India reported.

Partnerships – Malaysian oil and gas firm Petronas through its subsidiary has signed a carbon storage agreement for the M3 depleted field offshore Sarawak, Malaysia, with a consortium of Japanese companies. Japanese firms Petroleum Exploration, JGC Holdings Corporation, and Kawasaki Kisen Kaisha will conduct feasibility studies of CO2 storage sites and will also work on the development of such sites including onshore terminals and transportation pipelines. The collaboration will help reduce greenhouse gas emissions in the Asia Pacific region, according to the firms.

AMERICAS

What’s the hold-up? – The Biden administration has announced a delay in releasing new climate modelling for sustainable aviation fuel (SAF) feedstocks, attributing the hold-up to internal disagreements. This delay has caused concern within the biofuels industry, particularly regarding the uncertainty over corn-based ethanol’s eligibility for new subsidies under the US Inflation Reduction Act. The administration is grappling with how to implement a $1.25 per gallon SAF tax credit, demanding a 50% reduction in emissions compared to petroleum jet fuel. Although the ethanol industry is eager to supply SAF, it must demonstrate its environmental benefits through an approved model. The Department of Energy’s GREET model was set to be revised to accommodate this, but disagreements and environmental concerns over how land use for ethanol production is accounted for have led to delays. Despite the frustration, there’s optimism for a resolution that incorporates GHG reduction strategies and climate-smart agriculture practices, potentially requiring the industry to adopt additional sustainable practices to qualify for the SAF tax credit. (Reuters)

FERC nominees – US President Joe Biden announced Thursday his intent to nominate Judy Chang, David Rosner, and Lindsay See to serve as commissioners of the Federal Energy Regulatory Commission (FERC). By statute, FERC should be composed of five members, with no more than three from the same political party, with Chang having been nominated by Senate Minority Leader Mitch McConnell. In a response to the announcement, DC-based research firm ClearView Energy Partners noted the East Coast backgrounds of the three nominees and said experiential diversity and moderate politics may have been a focus in the selections. According to ClearView, Senate Joe Manchin (D, WV), chairman of the Energy and Natural Resources Committee, could schedule a nomination hearing within a few weeks, but the earliest nominees could expect to be seated would be in May.

Clean track record – US federal clean investment was estimated to have reached $34 bln in fiscal year 2023 (Oct. 2022 to Sep. 2023), which included tax credits, grants, and the fiscal cost of government loans, according to a joint report released by independent research teams from Rhodium Group and MIT’s Centre for Energy and Environmental Policy Research on Thursday. Clean energy and transportation investment in the US set another record in Q4 of 2023, reaching $67 bln – a 40% increase from the same period in 2022, while a combined investment in clean energy and transportation came in at $230 bln for fiscal 2023. The fastest investment growth last year occurred in the deployment of emerging climate technologies – up tenfold to $9.1 bln in 2023 from $0.9 bln in 2022 – and in the manufacturing of clean technology, up 153% to $49 bln in 2023 from $19 bln in 2022.

Cleaner washers and dryers – The US DOE announced Thursday the finalisation of efficiency standards for residential clothes washers and dryers that it said would reduce emissions by 71 Mt and save Americans up to $39 bln over 30 years. According to DOE, the final standards reflect a joint recommendation from a range of stakeholders, including the Association of Home Appliance Manufacturers, Consumer Federation of America, and energy efficiency advocates. In Sep. 2023, appliance manufacturers and an assortment of environmental groups joined forces to push DOE to adopt a broad plan for the implementation of an array of appliance regulations to prevent legal challenges from either side.

Brazilian carbon market survey – Espirito Santo revealed Thursday the results of a survey conducted map solutions for the carbon market and other assets resulting from the implementation of nature-based Solutions (NBS). 28 organisations active in the carbon industry participated in the survey, which was launched in Nov. 2023 and concluded at the beginning of February. The results indicated that the state should take a more active role in promoting NBS by establishing a jurisdictional carbon credit market, providing financial support, providing clear regulations. Espirito Santo was also identified by participants as a potential hotspot for afforestation, reforestation, and revegetation (ARR) projects, as well as for biodiversity.

VOLUNTARY

Icy Mammoth – The infrastructure for direct air capture (DAC) and storage plant ‘Mammoth’ from Swiss firm Climeworks is in place and 90% of the systems are operational, save its CO2 collector containers, per a company press release. Twelve of the total 72 CO2 collector containers have arrived onsite. Mammoth, billed as the ‘big brother’ to Climeworks’ smaller plant ‘Orca’ with ten times more carbon removal capacity, began construction 18 months ago. Located in Iceland, the company considers Mammoth an “important milestone” in its journey to reach megaton capacity by 2030.

Fescue to the rescue – Researchers from land-grant universities are embarking on a study to assist grassland farmers in the southeastern US, particularly within the Tall Fescue Belt, to join the carbon economy. The initiative aims to improve agricultural productivity, enhance ecological benefits, and optimise profitability through better soil health and biodiversity. Led by Clemson University, the project seeks participation from South Carolina farmers with grazing livestock, offering compensation for involvement. The organisers said the focus is on implementing management practices that could significantly impact soil carbon levels and reduce greenhouse gas emissions, contributing positively to both the environment and the economic viability of farming operations. Funded by a $30 mln grant from the USDA’s Partnerships for Climate-Smart Commodities, the study involves multiple land-grant institutions and corporate partners, including Tyson Foods and JBS Foods, among others. Practices under consideration include the establishment of native grasses, use of prescribed burns, interseeding legumes, improved grazing management, and soil amendments like biochar.

AVIATION

AND FINALLY…

Logos au naturel – The World Wildlife Fund (WWF) is encouraging brands, NGOs, sports teams, and schools to modify images featuring nature or animals in their crests and logos to raise awareness about biodiversity loss, Business Green reports. In support of the #WorldWithoutNature campaign, aligned with World Wildlife Day on March 3, organisations including Aston Villa, Carlsberg, Crystal Palace, Gymshark, ScottishPower, and Wolverhampton Wanderers have temporarily eliminated nature-themed images from their branding. Additionally, they have committed to using their social media channels to draw attention to the escalating issue of nature loss. For instance, Aston Villa, Wolverhampton Wanderers, and Crystal Palace, all English football teams, will display their club crests without the customary lion, wolf, and eagle motifs. Beer producer Carlsberg’s social media followers will also see a faded version of its green logo. According to figures cited by WWF, global wildlife populations have plummeted by an average of 69% since 1970.

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