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TOP STORY
SBTi staff call for CEO to be sacked, immediate reversal of Scope 3 offset use decision
A letter, sent by Science Based Targets initiative (SBTi) staff to the non-profit’s board and CEO and seen by multiple media sources, has called for the chief executive to resign and to immediately reverse a decision set to allow companies to use voluntary carbon credits to meet Scope 3 emissions targets.
AVIATION
Eleven carbon credit programmes vie for eligibility under UN’s CORSIA offset scheme in latest application round
Eleven carbon offset programmes have applied or reapplied to supply eligible compliance units for use by airlines in 2024-26 under CORSIA, the international aviation emissions trading scheme devised by UN body ICAO.
VOLUNTARY
INTERVIEW: VCMI distinguishes role in light of SBTi voluntary carbon announcement
The Voluntary Carbon Markets Integrity Initiative (VCMI) has maintained that it still has an important role in providing guidance for corporate climate claims and voluntary carbon credit use, in light of an announcement this week from the Science Based Targets initiative (SBTi) that signalled the body would undergo a major position change and also endorse offset use towards net zero goals.
Voluntary carbon standard advances deforestation risk mapping plans for jurisdictional REDD
A voluntary carbon standard has made a step forward on a deforestation risk mapping tool for jurisdictional REDD projects by advancing work across the first set of forest-rich nations, it said Thursday.
Ocean CO2 capture developer raises extra funding to support technology scale-up
A California-based direct ocean capture (DOC) company has raised additional funding to support the commercialisation of its technology to harness the ocean’s role in carbon absorption.
INTERVIEW: Startup seeks to boost coffee yield, climate resilience with mobile biochar reactors
Improving the climate resilience of smallholder farms while strengthening coffee supply chains is the focus of a Swiss-Colombian startup looking to apply carbon-rich biochar to the soils of coffee plantations, with the sequestration monetised through the sale of removals.
Carbon markets to retain key role in climate action but vulnerable to geopolitics, GenZero says
Carbon market participants should back harmonised quality standards and principles to secure its role as a foundation for international partnerships even in a scenario where global climate action become fragmented, Singapore’s GenZero said on Friday.
Global fashion giant invests in sustainable aviation fuel via international logistics firm
A luxury fashion house has made its inaugural investment in sustainable aviation fuel (SAF) through a partnership with an international shipping company.
EMEA
Euro Markets: EUAs post biggest one-day gain in 19 months as early gas spike triggers short-covering
European carbon prices jumped by the most in 19 months on Thursday, erasing Wednesday’s losses and setting a new three-month high, after an early gas-driven rally was amplified by a surge of short-covering as stop levels were hit, raising the prospect of further gains as short-positioned traders were expected to come under greater pressure.
EU lawmakers approve reform of power market, leaving room for ‘low-carbon’ gas
The European Parliament voted on Thursday to approve a reform of the EU electricity market design aiming to protect consumers from sudden price shocks, along with a plan to facilitate the uptake of ‘low-carbon gases’ such as hydrogen.
Serbia joins central and southern Europe regional energy exchange as part of preparations for CBAM
Serbia will join Hungary and Slovenia’s regional energy exchange to encourage development and help the country avoid the EU’s new Carbon Border Adjustment Mechanism (CBAM) fee, it announced this week.
UK waste-to-energy developer plans to add CCS to generate carbon-negative power
A UK waste-to-energy company announced Thursday that it is moving ahead with plans to invest £200 million in carbon capture and storage (CCS) technology at a site in Wales, which it says will turn the plant into a carbon-negative power producer.
ETS emissions now down 47%, not far to EU 2030 climate goal, official says
The record fall in emissions registered in 2023 puts the EU on track to reach its climate target for 2030, with only 15 percentage points to make up to hit the 62% greenhouse gas reduction objective set for the bloc’s ETS, an official said.
AMERICAS
WCI Markets: CCAs cautiously higher on rulemaking progress, WCAs up on small volume
California Carbon Allowances (CCAs) picked up following the highly anticipated release of a public workshop date on cap-and-trade programme rulemaking and an economic impact analysis of proposed changes, while Washington Carbon Allowances (WCAs) continued to slowly regain footing after prices crashed earlier this year in wake of a repeal initiative.
Washington announces cap-and-invest rulemaking in pursuit of linkage
The Washington Department of Ecology (ECY) announced on Thursday the commencement of rulemaking in consideration of amendments to its Climate Commitment Act (CCA), to facilitate linkage of the state’s carbon market with that of California and Quebec.
US IRA sparks dash for $5 bln in climate cash, but some state plans more credible than others -analysis
The US Inflation Reduction Act (IRA) has sparked a nationwide response from almost every state, as well as Washington DC and Puerto Rico, according to a new analysis, with jurisdictions all seeking to harness the programme’s offer of $5 billion in climate grants.
Montana locals worry about safety of proposed CO2 pipeline project
Residents of a county in Montana have raised concerns about a project that could see potentially millions of tonnes of CO2 piped in from Wyoming and stored underground.
Higher LCFS credit values required to adequately support SAF production -analyst
California’s current Low Carbon Fuel Standard (LCFS) credit values do not adequately incentivise market players to realise the potential for growth within the sustainable aviation fuels (SAF) industry, an analyst told webinar participants Thursday.
Global data centre firm adopts renewable fuel at US sites to reduce carbon footprint
A global provider of data hosting solutions announced Wednesday the expansion of renewable fuel use to replace diesel in power generators at several US data centres.
US emissions rise 1.3% in 2022 from post pandemic activity
The US Environmental Protection Agency (EPA) released annual GHG inventory figures for 2022 on Thursday showing nationwide emissions increased year-on-year from a post pandemic rebound in economic activity offset by CO2 sequestration from the land sector.
ASIA PACIFIC
Australia should aim for 65-75% emissions cuts in 2035 NDC, Climate Change Authority paper says
Australia’s Climate Change Authority proposed an indicative 2035 emissions reduction target of 65-75% below 2005 levels in an issues paper released Thursday, saying additional actions would need to be taken by all sectors to reach it.
China releases ecological protection compensation scheme regulations, highlights market-based instruments
China has introduced national regulations governing compensation for ecological protection, as the government aims to encourage the use of market-based instruments such as carbon credit purchases.
China’s coal plant build hits new high in 2023, driving global growth
Global coal capacity rose last year, with China – the world’s largest LNG importer and biggest developer of new solar and wind capacity – accounting for two-thirds of that growth, according to a think tank report published Thursday.
Japanese, Thai developers ink deal for JCM project
A Japanese project developer has entered into an agreement with a Bangkok-based firm for an afforestation project in Thailand under Japan’s Joint Crediting Mechanism (JCM), the companies announced Thursday.
INTERNATIONAL
Carbon credit prices should reflect host country investment needs, not just market rates -official
Carbon market buyers must appreciate the price of climate progress in developing countries and fund projects in line with their investment needs, not necessarily according to market rates, according to a government official speaking on an OECD webinar Thursday.
Insurance companies must stop covering climate change-inducing activities -report
Insurance companies need to implement transition plans to manage climate-related risks, or financial instability will unfold, a report published on Thursday warned.
Cotton demand driving deforestation in Brazil’s Cerrado linked to European fashion giants -report
Almost a million tonnes of cotton grown on deforested mega estates in Brazil’s biodiverse Cerrado region have been linked to the production of clothing and homeware for two of the world’s largest retailers, finds an investigation by an environmental NGO.
BIODIVERSITY (FREE TO READ)
FEATURE: Pressure mounts to include plastic credits in UN treaty, verifiers point to increasing interest
Environmental market standards are intensifying their push to establish an international framework for plastic credits under the UN plastics treaty, even as experts raise concerns over the viability of recycling at scale.
“Ghost roads” tearing down tropical forests in Asia-Pacific -research
Almost 1.4 million kilometres of roads not marked in official road maps and often built illegally, known as as “ghost roads”, are presenting a grave threat to tropical forests in the Asia-Pacific region, researchers have found.
EU report flags differences between biodiversity disclosure initiatives
Key differences between the most prominent biodiversity disclosure initiatives have been examined in a report published by the EU Business & Biodiversity (B&B) Platform.
UK should publish updated national biodiversity plan -report
The UK government should publish an updated National Biodiversity Strategy and Action Plans (NBSAP) setting out how it will deliver on international nature goals through disclosures, a report has found.
Biodiversity Pulse: Thursday April 11, 2024
A twice-weekly summary of our biodiversity news plus bite-sized updates from around the world. All articles in this edition are free to read (no subscription required).
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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.
Eurelectric “Lights ON” Power Summit – May 22-23, Lagonissi, Greece: This is our biggest event gathering every year around 500 energy experts across Europe. This year, we’ll welcome more than 60 speakers to discuss:
- Getting Europe’s power infrastructure ready for net-zero
- Delivering on the EU 2040 climate targets
- Powering Europe’s industrial competitiveness with affordable energy
- Ensuring security of supply in more hostile energy geopolitics
- Implementing the electricity market reform
- Speeding up digitalisation
- Integrating renewables with biodiversity
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
INTERNATIONAL
Blind spots – A ranking of 65 of the world’s largest insurers on their climate, social, and nature strategies has found that most have few exclusions for some of the world’s least sustainable projects. The ShareAction analysis, which assessed companies across the property, casualty, life, and health insurance spaces, looked at the strength of the companies’ overall governance structures and their engagement with clients on ESG-related topics. It also examined whether each insurance firm had a thorough plan to assess current and potential clients’ negative climate, nature, and/or social impacts, with performance across the board reportedly weak, according to ShareAction. Half of the companies assessed were given a grade of either ‘E’ or ‘F’ overall – the two lowest possible grades — with the poorest scorers including Lloyd’s of London, Sony Financial Group and Nationwide Mutual Insurance. (edie.net)
EMEA
Prolonged pain – German industry is unlikely to return to the heights it experienced prior to the Ukraine war due to continued high LNG prices placing Europe’s largest economy at a disadvantage, said the CEO of RWE, Markus Krebber, in an interview with the FT. His comments coincide with the 90% plunge in European gas prices from the record levels seen in 2022, leading to questions about whether industrial demand will recover. However, despite the recent sharp gas price declines, the European benchmark still sits above pre-crisis averages, almost two-thirds higher than the same point in 2019, with impacts playing out in the ongoing structural demand destruction of energy-intensive industries. Germany’s industrial stagnation has become politically sensitive, with some critique against the country’s green policies that can negatively impact manufacturers.
Coming up short – The UK is falling behind its European peers when it comes to decarbonisation and future-proofing of key sectors like energy and transport due to policy uncertainty and a shortage of green spending, according to a report by the DWS Research Institute. The study scores European countries by measuring their progress with respect to 2030 climate targets. In line with the European Climate Law, the EU has committed to reducing GHG emissions by a minimum of 55% by 2030 compared to 1990 levels, while the UK has established a target of reducing emissions by 68% by 2030 against the same baseline. In particular, the UK needs to focus on increasing renewable energy use beyond power generation, the report finds, as the country falls to the bottom of the list when considering renewables as part of the overall energy mix, not just electricity. Sectors such as buildings, aviation, and shipping need particular focus in the UK in order to decarbonise, while the country also has very low probability of achieving its transport decarbonisation targets. (edie.net)
Let the people decide – The EU should be more open-minded about allowing ‘climate-friendly’ fuel cars after 2035 and should let the market decide between EVs and vehicles powered by biofuels or synthetic fuels, said German Finance Minister Christian Lindner, in an interview with a regional newspaper. He pointed out that e-mobility is only one option for the car industry to become greener and that the market should decide what is economical and let consumers decide what they want, rather than relying on politicians and civil servants to determine the rules. The EU finalised legislation last year to end the sale of new diesel or gasoline cars and vans by 2035. Germany tried to ultimately block the legislation, which was overcome thanks to a compromise allowing for the use of e-fuels, a synthetic, greener alternative to gasoline.
Power of the stars – European Commission President Ursula Von der Leyen backed nuclear fusion in a speech at the Max Planck Institute for Plasma Physics in Germany on Thursday. She touted Europe as a world leader in nuclear fusion, and touted the potential of the technology as “enormous” and a possible safe and clean source of energy that could be an ideal complement to renewables in the energy mix of the future.
ASIA PACIFIC
Made in the AUS – The Australian Labor government has announced the Future Made in Australia Act, which will seek to compete with the US’ Inflation Reduction Act, the ABC reports. Prime Minister Anthony Albanese said the Act would consolidated the existing policy schemes such as the Hydrogen Headstart initiative, the Solar Sunshot programme, and the A$15 bln National Reconstruction Fund under one banner. Albanese said in a speech Thursday that Australia would suffer without greater government interventions, comparing the Future Made in Australia Act with other interventionist schemes in the EU, Japan, South Korean, and Canada, that invest in their manufacturing capacity and industrial base in a bid to keep up with the demands of the clean energy transition. The Act will focus on boosting public investment in areas such as rare earths mining and processing, hydrogen, and solar energy production, he said, although specific funding commitments were not detailed, and will likely be revealed in the upcoming May Budget.
New SAF Wales – Australian state New South Wales plans to spend A$100 mln to develop sustainable aviation fuel (SAF), following plans in next door Queensland and at a former BP refinery site outside of Perth, Western Australia. The news was reported by The Australian Thursday. These follow plans for SAF development at BP’s shuttered refinery in Western Australia, and developments in Queensland with national flag carrier Qantas as partner. Australia in particular is keen to develop its own ‘biojet’ industry as it already has perilously low supplies of liquid fuels kept in stock for vehicles. “In an effort to get the ball rolling, the NSW government has released a Sustainable Aviation Fuel Investment Prospectus outlining the state’s potential to drive the industry in Australia,” the newspaper said.
Limited blow – Indian credit rating agency ICRA’s latest report says that EU CBAM may have a limited impact on India’s primary aluminium producers, the Financial Express reported. Under the present notification, the financial impact is on the direct process-related emission only, while excluding the indirect emission, which contributes around 80% to the total emissions in the primary aluminium production process in the country, the report said. CBAM will not materially impact export competitiveness of domestic players, as taxes arising from CBAM are likely to remain in the range of US$ 50-140/tonne between 2026-34, which would be 2-6% of the current aluminium prices. However, if indirect emissions are also included in future, then the impact would be severe, equal to 27-30% of the current prices, as domestic entities are significantly dependent on coal-fired power plants for electricity. The EU has mostly switched to hydro power with almost 60% lower carbon intensity, it added.
Santos keeps Spence – After a concerted campaign by activist shareholders against the company’s chairman and its remuneration report failed, Santos chair Keith Spence and a remuneration report that amply rewards his CEO Kevin Gallagher made it through the shareholder vote. Remuneration saw a 9.3% revolt (which is in fact still a higher-than-average no), while Gallagher’s own incentives only saw a 2% negative vote. Spence saw only 6.5% of votes against him. The AGM shaped up as something of a proxy for a bigger and more public one two weeks later when shareholders decided to keep Woodside chair Richard Goyder, with one influential proxy already joining the ‘no’ camp.
We’ve got money – Japan’s Kyoto Fusioneering (KF) has raised a total of 1.5 bln yen ($9.9 mln) from three new investors in a Series C extension round, it announced Thursday. The injection brings the cumulative total raised in Series C to 12.0 bln yen and the overall total funds to 13.7 bln yen. The funds will accelerate the company’s research and development efforts to create facilities for integrated fusion power plant systems.
New material – Tokyo-listed Murata Manufacturing has launched a revolutionary ceramic catalyst material designed to reduce the impact of industrial gas exhaust systems, according to a company statement. Murata said its new product, unlike traditional catalysts, can help factory designers and exhaust gas treatment manufacturers achieve significant reductions in both natural gas consumption and carbon emissions while cutting dependence on precious metals, the statement said.
We promise – China’s central bank and six other government agencies have issued guidelines to strengthen the financial support for green and low-carbon development, according to China Daily. The country aims to build a financial support system for green development in the next five years and make policies more coordinated, effective and mature by 2035, with better resource allocation and risk management. The country will formulate and introduce unified carbon accounting standards for financial institutions, and promote financing firms to make environmental information disclosure, the report said.
AMERICAS
Not friendly enough – The Biden administration is incentivising farmers to adopt agricultural practices like planting cover crops and minimising farmland tilling to combat climate change by storing carbon in the soil. These methods are part of the USDA’s strategy to reduce the agriculture sector’s 10% share in US GHG emissions, aiming for net zero by 2050. Additionally, ethanol producers eye these practices to qualify for tax credits for sustainable aviation fuel under the Inflation Reduction Act. However, soil science experts express scepticism about the effectiveness of these practices in sequestering atmospheric carbon permanently. Interviews with experts by Reuters reveal a mixed opinion: while some acknowledge the potential for soil carbon storage, others point out that the amount and longevity of sequestration depend on various conditions, questioning the reliance of climate policy on these methods. Despite the USDA investing significantly in these practices, doubts remain about their impact on climate change mitigation. Experts suggest that while no-till and cover crops can offer environmental benefits like preventing soil erosion and boosting biodiversity, their role as a climate change offset is debatable. Critics argue for more aggressive strategies beyond these practices to effectively combat climate change. The adoption of cover crops and no-till farming has increased, but the overall effectiveness is influenced by factors such as soil type, climate, and crop rotation. There’s concern that any carbon sequestered can be quickly lost if traditional plowing resumes. Furthermore, the agriculture sector’s efforts to contribute to sustainable aviation fuel production hinge on farmers adopting these practices, which is under scrutiny as the Treasury Department finalises the details of the related tax credit.
Carbon rebate calculator – The Canadian government released Wednesday a carbon rebate calculator. The federal carbon pricing system in the country returns fuel charge proceeds to Canadians through direct deposit or cheque every three months in jurisdictions where the federal fuel charge applies, with the next quarterly payments starting to arrive Apr. 15. By answering four questions, users of the carbon rebate calculator can find out how much they receive back. Affordability of the carbon tax has become a hot button political issue in Canada, with the Apr. 1 increase taking place amidst a Conservative crusade against the tax.
BC low hydrogen – The BC Centre for Innovation and Clean Energy released a report Thursday that examines near-term opportunities in low carbon hydrogen production and deployment in British Columbia and beyond. Produced in collaboration with Orion Projects and Sky Point Resources, the report investigates the emerging ideas, approaches, and technologies being advanced in the sector, as well as the regulatory requirements, challenges, and important considerations that need to be addressed. It includes an in-depth analysis of hydrogen production pathways and the potential to leverage existing energy systems in the province, based on various scales of end-use applications. A webinar to discuss the findings will be held on May 9 at 1000 Pacific (1800 GMT).
VOLUNTARY
Early retirement – Microsoft was the largest corporate retirer of voluntary carbon credits in March, with 300,000, according to AlliedOffsets data. Vattenfall, a Swedish utility, was second, with 200,000, the data showed, with the energy sector the dominant industry for credit retirements. Shell, which has been an active retirer and was the largest in 2023, did not make the top 10. Over 800 firms retired credits last month.
Open invite – Stakeholders are welcome to apply to Verra’s new REDD Methodologies Working Group (WG), which will support the further development of Verra’s REDD methodologies and the continued evolution of the Verified Carbon Standard (VCS) Program’s rules and requirements related to REDD. In Nov. 2023, Verra launched the first component of its innovative REDD methodology, VM0048, as part of the “Enhanced Program Integrity and Impact” focus area of the New Era for Verra initiative. The WG will build on and expand this work by providing technical, science-based support for the further development of VM0048, with the aim of supporting Verra in its work to ensure that methodologies are reliable, accurate, and efficient.
SCIENCE & TECH
AND FINALLY…
Mile-high club sandwich – Thrust Carbon, an emissions intelligence platform for the travel industry, released data on carbon emissions associated with in-flight meals, addressing a crucial yet previously overlooked aspect of business travel’s environmental impact, it said. The research reveals that these meal emissions, while seemingly minor, amount to approximately 1% of a traveller’s total journey carbon footprint. With business travellers making up around 12% of all airline passengers, this amounts to 564,000 tCO2e annually from in-flight meals alone – the equivalent of driving a small car for over 5.12 bln kilometres, according to the data. A simple switch to plant-based meals could reduce emissions by almost 40%, said Thrust.
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