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TOP STORY
Japan carbon market attracts over 700 participants as emissions coverage increases
Japan’s voluntary domestic carbon market has recently added almost 200 new participants, further expanding the share of national emissions covered, the Ministry of Economy, Trade and Industry (METI) announced on Wednesday.
EMEA
EU carbon price surge not here to stay –analyst
The end of the EU carbon allowance price rally is in sight, with prices likely to start falling again in the next couple months, according to the research arm of a Dutch bank.
Euro Markets: EUAs post marginal gain amid further cuts in funds’ short positions as energy markets recover
EU carbon prices ended Wednesday marginally higher after early weakness was overcome with a boost from sharply higher coal prices, after a major US export waterway was blocked by a collapsed bridge, and stronger natural gas markets, on the back of supply cuts, while the weekly commitment of traders data showed a fourth consecutive reduction in net short EUA positions held by investment funds.
Nordics take lead on CCS, negative emissions as EU debates 2040 climate goal
Finland and Sweden – the two EU countries with the biggest forest carbon sinks – came up with the most elaborate positions on carbon capture and storage (CCS) as well as negative emission technologies during a ministerial debate on Monday about the EU’s future 2040 climate policy.
EU businesses and governments look to Mauritania to fulfill their hydrogen ambitions
EU firms and governments are promoting green hydrogen infrastructure in Mauritania, in a push that could account for most of the bloc’s 2030 target for green hydrogen imports and capitalise on the country’s proximity, cheaper production costs, favourable regulatory environment, and vast solar and wind energy potential.
UK oil and gas regulator pushes developers to cut emissions or face possible closure
The UK’s offshore oil and gas regulator is asking developers to boost electrification and cut down on flaring and venting or face potential closure, in an effort to reduce emissions from fossil fuels production while keeping supply secure.
UK competition regulator clamps down on greenwashing in fashion sector
Three high street budget fashion giants have pledged they will change the way they display, describe, and promote their green credentials in the UK amid a clamp down by the competition regulator on greenwashing that will impact the use of carbon offsets across the sector.
Launch of credit scheme for UK saltmarshes would be viable and boost carbon storage -study
The introduction of a carbon credit scheme supporting the restoration of UK saltmarshes would be feasible and provide a pipeline for private investment to help restore these degraded areas with significant carbon storage potential, a government-backed study has found.
AMERICAS
Renewable diesel fuels compliance across North American LCFS markets, but oversupply concerns persist
Low carbon fuel standards (LCFS) across North American markets will continue to see renewable diesel (RD) play a major role in helping fuel producers meet their carbon intensity (CI) targets, but regulators must continue to adjust stringency to maintain programme effectiveness in light of increased RD production capacity, experts said Wednesday.
Power producer defends lawsuit against Washington govt, claims discrimination under cap-and-trade
A gas-fired power producer has defended its motion for the Washington Department of Ecology (ECY) to either issue free allowances or prohibit the producer’s purchase of allowances that cover emissions associated with generation for non-Washington consumers, in an ongoing lawsuit.
California ARB offset issuance ticks up again, but remains behind 2023 levels
California regulator ARB has issued the highest number of compliance-grade offsets so far this year, although year-to-date totals continue to lag behind 2023, data published by the agency Wednesday showed.
Former FERC chairman joins board of California-based carbon removal company
A former chairman of the Federal Energy Regulatory Commission (FERC) has joined the board of a Los Angeles-headquartered carbon removal company that specialises in direct air capture (DAC) technology.
Canadian carbon credit financier sells CFR credits to undisclosed fuel supplier
A Vancouver-based carbon offset developer has announced a multi-year agreement to sell credits generated from Canada’s Clean Fuel Regulations (CFR), but did not disclose the purchaser’s identity.
ASIA PACIFIC
Study raises fresh doubts on Australian human-induced regeneration projects
A peer-reviewed paper has cast further doubt on human-induced regeneration (HIR) projects in Australia, finding that a large portion of pre-2022 projects are non-additional, while highlighting the politically-charged nature of the country’s carbon market.
Phase ACCUs out of Safeguard Mechanism, expand coverage to electricity sector, report urges
A report released Wednesday has called on the Australian government to strengthen the Safeguard Mechanism by expanding its coverage to the electricity sector, as well as to bar Australian Carbon Credit Units (ACCUs) from being used for compliances purposes.
Hong Kong-based airline sets 2030 carbon intensity target, expands SAF use
A Hong Kong-headquartered airline has set a new carbon intensity target for 2030, with plans to expand the use of sustainable aviation fuel (SAF) to support its climate goals.
Australia introduces Net Zero Economic Authority bill, commits A$189 mln in funding
The Australian Labor government on Wednesday introduced legislation to set up the Net Zero Economic Authority (NZEA), which will oversee the country’s transition to net zero emissions, and has committed A$189 million ($123 mln) to its establishment.
AU Market: ACCU price slumps over fresh integrity concerns as participants frustrated at lack of resolution
The Australian Carbon Credit Unit (ACCU) market faced a downturn Wednesday in the wake of a fresh study damning the integrity of human-induced regeneration (HIR) projects.
Coal miner found underreporting emissions in Safeguard Mechanism – just part of a bigger problem, conservation fund says
An Australian coal miner got its Scope 1 emissions assessment under the Safeguard Mechanism wrong, according to a conservation group that lobbied for documents filed to the Clean Energy Regulator (CER) via Freedom of Information (FOI) requests, but this is just the beginning of coal mining’s emissions issues, the group said.
Rising temperatures could lead to Australian soils becoming a net emitter, study finds
International research has found that a warming climate will turn Australia’s soil into a net emitter of carbon dioxide.
Pressure on for Australian govt to halt massive Woodside LNG life extension
One of Australia’s most noted retired statesmen and politicians has co-signed a letter asking the environment minister to reject Woodside Energy’s plan to extend the life of a 40-plus year old LNG export plant to 2070, a move seen to result in several billion tonnes of CO2e emissions.
Seoul becomes first Korean city to earn carbon credits from bike-sharing scheme
Seoul has become the first local government in South Korea to secure certified carbon emissions credits through its public bike-sharing programme.
INTERNATIONAL
International oil and gas forum backs key role for carbon markets in energy transition
An inter-governmental organisation comprised of oil and gas stakeholders has underlined the importance of carbon markets for the energy transition, especially for financing technological solutions to decarbonise hard-to-abate sectors, in a recent report.
Oil and gas companies fail to sufficiently disclose climate risks for investors -study
The voluntary climate action disclosure from 10 oil and gas majors falls short of what investors need to accurately gauge how they will meet their goals, and the risks posed by those transitions, according to analysis published on Wednesday.
VOLUNTARY
Beyond value chain mitigation guidance supports higher climate ambition, needs manageable carbon price
Applying beyond value chain mitigation (BVCM) principles in practice will initially need feasible internal carbon fees to gain traction, but its breadth can inspire greater corporate climate coordination, according to stakeholders speaking on a webinar Wednesday.
Registries should lead the charge to scale voluntary carbon market, finds survey
Registries should address key inhibitors to voluntary carbon market growth, including insufficient price transparency, standardisation, and interoperability, according to stakeholders surveyed by two financial analytics firms.
German marketplace inks large biochar carbon removal deal with Bolivian developer
A developer of biochar-based carbon removals in Bolivia has signed a deal with a German marketplace startup to supply 81,600 of tonnes to the platform, the companies announced on Wednesday, among the largest deals done so far in the sector.
Enhanced rock weathering shown to boost crop yields, improve soil, bolster nutrient uptake
The spreading of crushed silicate rock on agricultural land to precipitate CO2 capture, known as enhanced rock weathering, leads to higher crop yield in addition to improved nutrient uptake and soil pH, a scientific study has found.
BIODIVERSITY (FREE TO READ)
Marine protected areas can benefit fishing, tourism with profits in the billions, study reveals
An assessment of marine protected areas (MPAs) in 34 countries has revealed that ocean conservation can generate significant economic benefits to the fishing and tourism industries, with some profits in the billions.
Marine biodiversity credit market may need “new type” of units, RePlanet says
UK-headquartered biodiversity credit developer RePlanet has stressed the need to develop tailored biodiversity units for marine conservation due to critical challenges holding back the market.
Africa biodiversity advisor warns against relying too heavily on private financing, credit markets
Relying on private financing such as environmental credits as the main means to scale funding of nature could be “a risky strategy”, a top advisor to African biodiversity negotiators said Tuesday.
Scientists say protecting biodiversity effective approach to avoid another pandemic
Conserving natural areas and promoting biodiversity are “efficient methods” to prevent future pandemics, a study has shown.
Brazil, France announce €1 bln plan to ramp up financing towards “bioeconomy” in the Amazon
The Brazilian and French presidents have announced a €1 billion investment plan to address climate change and deforestation in the Amazon, as Brazil strives to boost international funding for environmental protection under its G20 Presidency.
Australia open to include OECMs in Nature Repair Market
Australia on Wednesday released its second public consultation on Other Effective area-based Conservation Measures (OECMs), saying they might be approved for biodiversity crediting under the nation’s Nature Repair Market (NRM).
UK biodiversity net gain tool for small developers launches
An online tool to help small developers comply with biodiversity net gain (BNG) laws has launched, ahead of the legislation coming into force for them on Apr. 2.
NA100 publishes guide on engaging with priority sectors
A guide for investor members of the Nature Action 100 (NA100) initiative on engaging with companies in eight priority sectors has been published by non-profit Ceres.
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CONFERENCES
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 Turkiye – May 9-10, Izmir: With the launch of the pilot ETS in Q4 and a burgeoning voluntary carbon market in the country, this event will give attendees an understanding of the significant impact these schemes, as well as the EU’s CBAM, will have on your business. Full conference agenda coming soon. Secure your spot
Argus Asia Carbon Conference – May 13-15, Kuala Lumpur: Join over 200 industry leaders and senior government officials at the Argus Asia Carbon Conference in Kuala Lumpur on 13-15 May 2024. Connect with key players and explore new opportunities in the region as we discuss innovations in carbon technology, advances in voluntary and compliance markets, the impact of CBAM, financing, nature-based project developments, and more. With ministerial addresses and keynote sessions from Petronas and SaraCarbon, this is your opportunity to gain valuable insights on pan-Asia’s evolving carbon markets. Register
Argus Europe Carbon Conference – May 21-23, Nice: Plan your carbon strategy through market-driven decarbonisation solutions at the at the Argus Europe Carbon Conference on 21-23 May in Nice, France, as we examine the EU ETS and other global compliance structures, voluntary carbon markets and their intersection with carbon abatement industries. This year’s agenda covers the integration of the maritime sector into the EU ETS, the impact of Europe’s exported carbon price through CBAM, developments in carbon removal technologies, voluntary certification methods, and developments around diverse, high-quality credits from Verra and many other leading standards. Register your place to explore new opportunities within Europe and globally.
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
Carbon Forward Expo – October 8-10, London and Online: Save the date! More info coming soon…
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BITE-SIZED UPDATES FROM AROUND THE WORLD
EMEA
The ITV influence – UK-based broadcaster ITV is aiming to be a sustainability and climate change influencer through the use of its output to galvanise viewers into action, its Climate Transition Plan states. Alongside this, it aims to reduce Scope 1 and 2 emissions by 46.2% by 2030 and Scope 3 emissions 28% by that date. The broadcaster aims for all its electricity to come from a renewable tariff by 2025 and to achieve a 90% reduction in all emissions by mid-century. Other targets are to ensure its productions stay resilient in the face of more extreme climate-related weather events and to play a key role driving the climate transition more widely in the creative sector. (Sustainabilitymag.com)
Slow growth – Germany’s economy is emerging from its downturn slower than expected and will likely only achieve minimum growth of 0.1% in 2024, according to joint analysis by five research institutions. Declining energy prices mean these are losing in relevance for growth prospects, while a ”mild” reform of the country’s debt brake could put the German economy on a more solid footing in the long term, they found. The researchers expect private consumption to be the driving force for GDP growth soon, largely thanks to a robust labour market and low unemployment, with GDP growth of 1.4% potentially expected in 2025. Consumption is aided by falling energy prices, meaning the rate of inflation slowed to 2.3% this year and 2.8% if energy is not factored in.
ASIA PACIFIC
Stress test – South Korea’s central bank and the financial watchdog will conduct a joint climate stress test with 15 financial institutions in the country, Korea Times reported, citing an announcement by the Bank of Korea (BOK) and the Financial Supervisory Service (FSS). According to the government’s plan, the BOK and the FSS will finalise the climate scenarios during the first half of this year. The outcomes of the test will enable financial institutions to develop and execute strategies for low-carbon transition, the report said.
Sunshot – Australian Prime Minister Anthony Albanese has announced A$1 bln ($652 mln) will go towards solar manufacturing in the country as part of the Solar Sunshot programme. The government said it would help ensure more solar panels are made in Australia, partly in response to similar international policy initiatives, such as the Inflation Reduction Act in the US. Australia is also scrambling to meet its target of 82% renewables in the electricity grid by 2030. The programme will be delivered by the Australian Renewable Energy Agency (ARENA), with development to be done in collaboration with the Department of Climate Change, Energy, Environment and Water. The aims of the scheme will be to provide support across the solar pv supply chain, including the scaling up of module manufacturing capabilities. ARENA said it would begin consulting widely with industry to inform and develop a final programme design.
AMERICAS
LCFS workshop – California regulator ARB will hold its public LCFS workshop on Apr. 10, beginning at 0900 PDT (1600 GMT). The workshop will discuss potential refinements to the proposed regulatory amendment package, including re-evaluation of proposed CI benchmarks, and more consideration of proposed sustainability guardrails, following extensive feedback. Additional feedback following the workshop may be submitted to a dedicated docket, ARB detailed.
SEC showdown – Energy companies Liberty Energy and Nomad Poppant Services asked the US 8th Court of Appeals on Tuesday to stop recently passed Securities and Exchange Commission (SEC) rules on corporate climate disclosure from taking effect pending litigation. On Mar. 16, the 5th Circuit Court of Appeals granted the oil service firms’ first request for an immediate stay of the reporting requirements, but the rules were reinstated shortly thereafter following consolidation and assignment to a different venue. Although the approved rules notably excluded Scope 3 reporting requirements envisioned in original drafts, the energy companies have argued that SEC exceeded its authority in establishing climate rules the firms have called “wildly speculative”.
Methane mayhem – Over 20 US oil and gas trade groups are calling on the Environmental Protection Agency (EPA) to revise its proposed methane fee under the Inflation Reduction Act (IRA), which would impose a $900/tonne charge on oil and gas producers this year, ramping up to $1,200 to 2025 and $1,400 in 2026. The associations contended that EPA’s proposed rule creates an incoherent regulatory regime, fails to meet the statutory requirements outlined by the IRA, and disincentivises emissions reduction efforts by the industry. The groups further advocated for higher flexibility on netting requirements to incentivise higher emissions reductions, calling the current proposal “misguided and harmful”. (World Oil)
CA clean fuels – An amendment made Thursday to AB 2870 by California Assembly Member Al Muratsuchi (D) would prohibit the state board from including avoided methane emissions in the calculation of CI and also would prohibit a fuel pathway holder from including avoided methane emissions in the calculation of CI in the fuel pathway holder’s annual report. The bill was re-referred to the Assembly Transportation Committee.
IL clean fuels – SB 1556, introduced by Illinois Senator Dave Koehler (D), would task the state Environmental Protection Agency to establish rules for a clean fuel standard, namely reducing the CI from on-road transportation by 20% by 2038. The bill was last postponed from the Senate Energy and Public Utilities Committee on Friday, with a deadline of Apr. 5, 2024.
Alabama CCS – Nebraska-based energy company Tenaska announced its carbon capture and storage project situated in Mobile County, Alabama, known as the Longleaf CCS Hub, on Friday. The project’s Class VI permit application is under review by the EPA, and looks to begin construction in late 2025, with commercial injection a year later. The project is participating in an award through the DOE’s Office of Fossil Energy and Carbon Management, through award recipient Southern States Energy Board.
MX green tax – The green tax for the Mexican state of San Luis Potosi will come into force in June, and there will be no further extension, said J. Guadalupe Torres Sanchez, the secretary general of the state government, reported Plano Informativo on Tuesday. The primary contributors to the tax include the state’s international airport and a gas-fired electricity plant of the Federal Electricity Commission. The green tax was initially slated to begin on Apr. 1.
VOLUNTARY
Rating first – BeZero Carbon has assigned the voluntary carbon market’s first-ever rating of a food rescue project, grading the credits issued by Mexico-based CSA 1399-0035 an ‘A’, which means a high chance of avoiding or removing a tonne of carbon. The project exhibits a high likelihood of additionality, due to the strained financial landscape faced by the food banks involved, and the lack of common practice around this form of food rescue in Mexico, the rating agency noted. The rating is further supported by the project’s low policy risk, due to its unsupportive policy environment. “We also find low risk of leakage, coming only from potential rebound effects,” BeZero added. “The risk of non-permanence is also low due to the nature of the project, and because we find minimal information risk associated with it. The project faces notable risk of over-crediting, however, as it groups broad categories of food items together in its carbon accounting.”
Grounded – NGO Carbon Market Watch has taken aim at the first batch of issued carbon credits that are eligible for Phase 1 (2024-26) of the UN’s CORSIA international aviation offsetting scheme, in an analysis published Wednesday. The Brussels-based organisation said that the 7.1 mln issuances under the ART TREES standard are based on a “theoretical, and somewhat arbitrary” assessment of the level of deforestation expected in Guyana, arguing there is a high risk that one credit does not equal one tonne of CO2 mitigation. While this doesn’t mean that Guyana’s efforts have no impact, or that they should not be supported with international finance (quite the contrary), using these credits under the assumption that they can fully compensate for the climate damages of airlines is unrealistic, the Carbon Market Watch added. Last week, the UN’s aviation agency decided that no new voluntary carbon crediting programmes would be approved yet for the current phase of CORSIA.
SCIENCE & TECH
Greener steel momentum – A development in the race to produce lower-carbon steel has occurred with Bill Gates-backed startup Electra successfully making emissions-free iron without melting ore on commercial-sized prototypes. Accounting for 4% of annual CO2 emissions, accessing greener steel is key focal point for automakers, electrical-appliance makers, and equipment manufacturers, who are willing to pay a premium for the material of up to 50%. Many green steel startups have secured considerable investments, including Sweden-based H2 Green Steel, which raised $1.6 bln in equity in 2023. The three main ways to make emissions-free steel are to capture CO2 and store it underground, replace coal with a carbon-free fuel such as green hydrogen, or use carbon-free power to go from iron ore to iron and then convert that into steel in existing electric-arc furnaces. The latter is the process adopted by Electra. The company is now focused on finding a site for its first commercial-scale plant, having raised $85 mln from some high profile investors including Breakthrough Energy Ventures and Amazon’s Climate Pledge Fund, and forged partnerships with iron ore producers like BHP and steelmakers like Nucor. (Bloomberg)
AND FINALLY…
Anthropocene rejected – No, we are not living in an Anthropocene epoch. So says the Anthropocene working group of the International Union for Geological Sciences (IUGS), which has firmly rejected a proposal to declare it following an epic academic row over a proposal 15 years in the making, The Guardian reported. The proposal would have ended the Holocene epoch – 11,700 years of stable climate since the last ice age – and made the period from 1952 onwards the Anthropocene epoch, to reflect the changing impact of humanity. The working group had concluded that the radioactive isotopes spread worldwide by hydrogen bomb tests are the best marker of humanity’s transformation of the planet. A subcommission rejected the proposal in February by 12 to four, even though its chair, who supported the proposal, said the vote went against the rules. In the next step in the process, the chairs of the union’s 17 subcommissions supported the vote against the proposal almost unanimously. The final decision cannot be appealed.
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