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WEEKEND READS
FEATURE: Scientists tackle seagrass decline with probiotics to enhance resilience and build credit projects
Researchers are developing probiotics to improve the root structure of seagrass, with potential for large-scale, credit-generating restoration projects in Saudi Arabia and Kenya.
INTERVIEW: Meet the Pirate lawmaker fighting for the world’s first carbon removal Bill of Rights
A lawmaker from the libertarian Pirate Party in tiny Luxembourg is fighting to have a groundbreaking regulation approved that would be the first in the world to provide an incentive scheme for carbon removal (CDR) technologies.
EMEA
Top German steelmaker to cut production citing energy costs, climate policies
Germany’s largest steelmaker has announced plans to reduce output by around 20% because of consistent high energy costs “owing to climate policy objectives” and pressure from Asian competitors, the company’s executive board said Thursday evening.
EU nations give final nod to energy-efficiency law for buildings
The Council of EU member states gave the final go-ahead on Friday to a new EU directive aimed at reducing the energy consumption of buildings, in an attempt to decarbonise the sector before it enters the bloc’s ETS in 2027.
Euro Markets: EUAs reach 3-month high, post 18% weekly gain as short covering continues amid energy strength
European carbon prices jumped to their highest in three months late on Friday, extending Thursday’s 8% gain and posting an 18% weekly increase as short-covering continued to drive the market, while also helping boost energy prices to their strongest in more than two months.
AMERICAS
LCFS Market: California prices drop 6% on ARB workshop disappointment
California Low Carbon Fuel Standard (LCFS) prices sold off following ARB’s Tuesday release of public workshop materials, with market participants disappointed at the regulator’s proposed choice of a 30% carbon intensity (CI) reduction target for 2030, while traders pondered ARB’s rationale given the programme’s outsized surplus bank.
Emitters pick up RGGI length, while traders reduce positions in all three US carbon markets
Covered entities were the only group to increase RGGI Allowance (RGAs) holdings recently, while speculators reduced net length across all three North American carbon markets, data from the Commodity Futures Trading Commission (CFTC) showed Friday.
Amended CCS bill passes Colorado House committee
A bill introduced in Colorado that aims to expand the state’s Energy and Carbon Management Commission’s (CECMC) regulatory authority on carbon capture and storage (CCS) operations passed a legislative committee Thursday with significant amendments.
Argentina removes all mention of ETS, carbon emissions, renewables from ‘Omnibus Law’
The Milei administration in Argentina has removed details on carbon emissions, renewable energy, and a proposed ETS from its far-reaching ‘Omnibus Law’, in the latest episode of the reform bill saga, which began in late December.
Third carbon market ETF to close this year
Another US-listed carbon market ETF will start to liquidate its holdings this month, the third such fund to close this year.
ASIA PACIFIC
CN Markets: CEA price retreats from all-time high, liquidity improves
Chinese carbon allowances have retreated from the all-time highs seen in previous weeks with healthier trading volumes, but remain well above the 80 yuan ($11.05) threshold amid continued optimism for the market.
NZ Market: NZU price rollercoaster as minister says Climate Change Commission advice ‘not gospel’
The NZU price fell 5% on Thursday, but regained ground Friday, following remarks from New Zealand’s Finance and associate Climate Minister Nicola Willis that advice from the Climate Change Commission is “not gospel”.
Australia Market Roundup: Capacity Investment Scheme starts in Western Australia seeking 2 GWh of storage, ACCU issuance slumps
The Australian government is consulting on how to implement its Capacity Investment Scheme (CIS) in Western Australia, as observers react to its Future Made in Australia Act announcement.
Japan becomes first country to include greener concrete, seaweed beds in emissions inventory report
Japan in its latest annual emissions inventory report included carbon removals from environmentally friendly concrete products and seaweed beds, the first country to do so, the environment ministry announced Friday.
Vietnamese scientist eyes coconut carbon credit potential
Vietnam sees potential in generating carbon credits from its coconuts, with a local study suggesting plantations in one province could absorb anywhere from 1.9-5.8 million tonnes of CO2.
INTERNATIONAL
International Tax Task Force on climate finance to host first gathering at IMF-World Bank Spring Meetings
The International Tax Task Force, an intergovernmental alliance promoting taxation to increase climate and nature finance flows, will meet for the first time and gain new members at the Spring Meetings of the International Monetary Fund (IMF) and World Bank in Washington next week.
France latest to join global pro-carbon pricing alliance
France has become the latest country to join a group of nations pledging to expand carbon pricing mechanisms around the world, its government announced on Friday.
VOLUNTARY
Methane offset developer to raise C$3 mln in IPO, lists orphaned well VCM projects under recently-approved methodology
A Florida-headquartered methane offset developer is looking to raise C$3 mln in an initial public offering in Canada, after this month listing two orphaned oil and gas well projects on a US-based voluntary carbon registry.
World’s soils losing a billion tonnes of inorganic carbon every year, study finds
Environmental degradation means some 1 billion tonnes of soil inorganic carbon (SIC) every year leaks into inland waters, with countries like China and India particularly affected, a group of researchers has found.
Researchers explore soil and rock dust combinations for effective CO2 removal
Carbon dioxide removals achieved through enhanced weathering (EW) can be heavily influenced by the soil to which the pulverised crushed rock is added, new research has found.
BIODIVERSITY (FREE TO READ)
Dominican Republic formally commits to protecting 30% of waters
The Dominican Republic has formally committed to protecting at least 30% of its waters, fulfilling part of its commitment under the Kunming-Montreal Global Biodiversity Framework (GBF).
Indian states approve 500 land areas for involvement in controversial green credit scheme
Ten Indian states have approved over 500 plots of degraded forest lands for inclusion in the government’s Green Credit Programme despite experts and environmentalists objecting the scheme rules could have devastating impact on ecosystems.
TNFD, GRI announce closer nature and biodiversity reporting collaboration
The Taskforce on Nature-related Financial Disclosures (TNFD) and the Global Reporting Initiative (GRI) have announced they are tightening their collaboration to better support corporate nature and biodiversity reporting.
Nature funding for Indigenous Peoples and local communities increases 36%
Donor funding for tenure and forest guardianship by Indigenous Peoples, Afro-descendant Peoples, and local communities increased by a third over the last eight years, though few resources directly reached on-the-ground organisations, a report has found.
Open source tools key to boost corporate reporting, EU biodiversity boss says
Developing free monitoring tools is crucial as corporates’ interest in disclosing their biodiversity footprint is increasing, the director for biodiversity at the European Commission said Thursday.
Including OECMs in Australia’s biodiversity targets could lead to “perverse outcomes”, study says
Australia’s plan to rely on Other Effective area-based Conservation Measures (OECMs) to meet its biodiversity protection targets could have troubling implications, a paper has said, as the government mulls making these areas eligible for biodiversity crediting.
German banks’ interest in nature is growing but still not sufficient, PwC analysis says
Financial institutions in Germany are increasingly taking nature into account in their strategic plans, though commitments are still in the very early stages, analysis has shown.
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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
VOLUNTARY
No change – The Science Based Targets initiative has issued a clarification saying it hasn’t made changes to its standards amid widespread criticisms from its staff and environmental groups, Bloomberg reports. On Tuesday, SBTi’s board took steps to loosen guidelines for how companies can use carbon credits to reduce their reported emissions. The announcement prompted some employees to call for the resignation of the group’s board and the chief executive. SBTi issued a “clarification statement” dated Thursday, saying there has been “no change” to its current net zero standards. The group said any adjustment to its standards, including the use of so-called environmental attribute certificates for Scope 3 emissions, will be conducted according to previously approved SBTi procedures for developing standards. SBTi added that a draft proposal about potential changes to Scope 3 will be published in July, to be followed by a standard procedure including research, public consultation, and approval by the technical council. Meanwhile, the SBTi’s trustees received support from various non-profits and companies, particularly from the Global South, applauding the decision as a way to direct more climate finance towards local community-led environmental projects, Reuters reported.
Check your work – The UN has completed technical checks on the REDD emissions reductions calculations of Guatemala for the period 2006–16. The Central American country’s submission had corresponded to a 15.3 MtCO2e per year, though has since been modified to 13.5 Mt. The assessment team said that the country’s proposal had been transparent, complete and in overall accordance with the guidelines, though there were a few areas for future technical improvement. The move could pave the way for these savings to be sold as REDD credits to the voluntary carbon market, although previous attempts to sell these have proven largely unsuccessful amid an outcry from private sector participants that such units lacked sufficient rigour.
Higher branches – CTrees has announced the appointment of Stephen Hagen as its first COO. Hagen joined CTrees last autumn as head of nature-based solutions and lead scientist for the DeVine project, a joint partnership with Conservation International and CTrees to monitor management of lianas, vines in tropical forests that inhibit regrowth of forests. As COO, Hagen will manage CTrees’ data and research initiatives for monitoring, reporting, and verification of natural climate solutions, the firm said this week. Previously, Hagen served as chief research officer at Regrow Ag, a science and technology company that helps companies in the agricultural sector to reduce emissions and adapt to climate change.
Charm offensive – Klimate.co, a platform dedicated to comprehensive carbon removal strategies, and Charm Industrial, a company specialising in converting biomass into a carbon-rich liquid for underground sequestration, have expanded their partnership through a $1.1 mln offtake agreement aimed at enhancing high-quality carbon removal efforts. This partnership expansion, as announced by Simon Bager of Klimate.co, will support the delivery of nearly 1,900 tonnes of permanent CO2 removal. The collaboration between Klimate.co and Charm began in 2021 and has since facilitated over 6,200 tonnes of CO2 removals, serving major clients like Stripe, Shopify, and Microsoft. Moreover, Charm also secured $100 mln in a Series A financing round in June 2023 and inked a significant deal with Frontier and JPMorgan Chase to remove an additional 140,000 tonnes of CO2. Bager highlighted the joint commitment of both companies to significantly scale their carbon removal capabilities to help meet global climate goals.
EMEA
Milieudefensie vs Shell – A Dutch environmental group, Milieudefensie, is advocating for a stricter interpretation of a 2021 court order that mandates Shell to cut its carbon emissions by 45% by 2030. During a hearing in The Hague on Friday, the group argued against Shell’s use of asset sales and carbon capture and storage to achieve these reductions. Shell, on the other hand, is appealing the 2021 ruling, contending that it lacks a legal basis and could force the company to breach contracts. The original ruling required Shell to reduce its emissions by 740 Mt annually, a target significantly more ambitious than its current plans. The appeal, wrapping up after four days of hearings, could have major implications for the oil industry in Europe, particularly in the context of recent shifts back to fossil fuels driven by high energy prices. A verdict is expected in the latter half of the year, with further potential for the case to reach the Dutch Supreme Court. (Bloomberg)
Innovation Fund – Calls for projects under the 2023 round for the Innovation Fund closed on Friday (April 12), with a total of 337 proposals. This year’s round was opened on Nov. 23 with a record budget of €4 bln, funded by revenues from the EU ETS. “Projects will now be assessed based on their potential to reduce GHG emissions, their degree of innovation, maturity, replicability and cost efficiency,” the Commission said. Successful applicants will be informed in Q4 2024 and sign grant agreements in Q1 2025. The funding is broken down in four categories: 1) €1.7 bln for projects with CAPEX above €100 mln, 2) €500 mln for projects with CAPEX between €20 mln and €100 mln, 3) €200 mln for projects with CAPEX between €2.5 mln and €20 mln, 4) €1.4 bln for projects with CAPEX above €2.5 mln focusing on the manufacturing of components for renewable energy, energy storage, heat pumps, and hydrogen production, 5) €200 mln available for projects with CAPEX above €2.5 mln focusing on deep decarbonisation (pilot). More info here.
Picked his moment – UK energy minister Graham Stuart has quit the government as he prepares to face a tight election in the coming months, Bloomberg reports. As minister, Stuart was responsible for energy security and net zero. In December he attended COP28 where he was criticised for flying back and forth between the UK and Dubai during the summit. The government named Justin Tomlinson, a former junior minister in the work and pensions department, as the replacement. Stuart is the latest in a string of government resignations. Britain is due to hold a general election this year.
Don’t poo poo it – The first sewage-to-SAF plant aims to start up in the UK in 2029, the Times writes. Backed by Wizz Air, Firefly plans to soon build a pilot facility, followed by a planned commercial-scale plant shortly thereafter. Firefly’s novel route to SAF utilises a difficult to dispose, abundant waste feedstock – sewage sludge. Carbon Pulse interviewed its founder last November. In 2023, Firefly received £5 mln in funding from the Hungary-based low-cost airline to advance its technological development of SAF from sewage, in addition to an order of up to 525,000 tonnes of fuel over 15 years.
Neighbourly support – Germany should use its own experience of the impact on citizens of a national CO2 price on transport and heating fuels to support EU neighbours in preparing for the impact of the upcoming ETS2 on transport and heating fuels, said Dirk Messner, president of the Federal Environment Agency (UBA). The EU ETS2 is set to come into force in 2027, which could potentially trigger higher costs for fuels like petrol or heating oil across the EU, hitting low-income households particularly hard. Germany is considering whether to introduce a climate bonus, a per capita payments to citizens to return the revenues from carbon pricing and, given its existing CO2 price on transport and heating fuels, it is unclear whether there would be a price jump in the country when EU ETS2 comes into force. (Clean Energy Wire)
ASIA PACIFIC
Huge potential – China’s forests are poised to function as a substantial net carbon sink, sequestering an estimated 172.3 ± 16.9 Tg C yr−1 (average annual net carbon change) over the course of 2020–2100, a study published in Nature has found. An additional sink of 28.1 ± 0.4 Tg C yr−1 (totalling 2.3 ± 0.03 Pg C) can be achieved through the adoption of optimal management practices such as implementing both tree replacement and wood harvest extension, the paper showed.
Big buy – Australian utility Origin Energy has an agreement with Virya Energy to acquire its planned 1.5 GW Yanco Delta Wind Farm in New South Wales for A$300 mln, Renew Economy reports. It comes a day after Origin announced its first offtake deal for a big battery project in Queensland, signing up to the 250 MW/250 MWh Supernode battery in Brisbane. The Yanco Delta purchase boosts Origin’s wind and solar development projects to more than 3.3 GW. Virya Energy said the project is not likely to start construction until 2025-26 and be operational by 2029. It comes as Origin is negotiating with the NSW government over the closure of its 2.88 GW Eraring coal-fired power station, which is slated to shut in 2025.
Snapped up – ASX-listed Australian renewable energy developer Genex has agreed to a binding offer to be acquired by Japan’s Electric Power Development Co (J-Power), it told the market Friday. J-Power will acquire all of Genex’s shares for 27.5 cents per share via a scheme of arrangement, as well as agreeing to an off-market takeover offer for all of Genex shares for 27 cents per share if the scheme is not approved by shareholders. The deal values the company at A$380 mln ($247 mln), and implies a value of A$1 bln, the company said. Genex is currently building the 250 MWh Kidston pumped hydro project, as well as several other large-scale renewable energy projects across the state, that are already largely being funded by J-Power, which already owns a 7.73% stake in the company. If the deal clears all the regulatory hurdles, it will likely complete by July.
AMERICAS
Backed by Bill – Microsoft’s founder Bill Gates and former employees have donated some $2 mln towards “No on 2117” campaign, which seeks to defend Washington’s carbon market, E&E reported Friday. The campaign goes against ballot initiative 2117 (I-2117) that was introduced to repeal the state’s cap-and-trade programme. Governor Jay Inslee (D) had previously told Carbon Pulse of Microsoft and BP’s support towards a campaign against the repeal, although the governor did not put a number to their contributions at the time.
Moving along – Two New Hampshire house bills relating to the study of nature-based voluntary carbon credits generated in the state underwent a hearing before the Senate Energy and Natural Resources Committee on Tuesday, according to state documents uploaded Friday. HB 1709, which would establish a forest commission to study the effects of forest carbon programmes in-state, was supported by all committee members alongside members of the public, and saw opposition from industry and landowner groups. Meanwhile, HB 1697, which would mandate the Department of Revenue Administration to conduct a study of lost timber tax revenue as a result of forest lands enrolled in carbon credit offset programmes, saw support from all committee members, industry and landowner groups, and environmental non-profits, with solo opposition from a member of the public. The committee will next conduct a work session before it may head to the floor for vote.
SCIENCE & TECH
Nice for nickel – This week, Silicon Valley-based Metalplant said it introduced a significant advancement in CO2 sequestration and the production of carbon-negative metals like nickel and cobalt. Metalplant’s co-founder, Albanian-American billionaire Sahit Muja, said the company has been quietly developing this technology in collaboration with leading scientists and universities worldwide. Metalplant’s process reportedly enables the production of metals essential for industries like batteries and green stainless steel, while permanently sequestering 200 tonnes of CO2 for every tonne of nickel produced. The technology mimics natural processes to accelerate CO2 absorption using enhanced weathering of green olivine minerals, Muja said. (Green Innovation News)
AND FINALLY…
BoJo vs Abbo – Former British PM Boris Johnson urged Canada’s Conservative party to adopt a credible green agenda for the next federal election, expected in Fall 2025. Speaking at a conference in Ottawa this week alongside former Australian PM Tony Abbott, Johnson highlighted the importance of addressing climate change through technological advancements that can generate jobs and growth. He advocated for a ‘conservative’ approach to environmental issues, acknowledging the continued role of hydrocarbons while promoting initiatives like nuclear power and EV production. Contrasting Johnson’s stance, Abbott, who led Australia from 2013 to 2015, expressed scepticism about mainstream climate science and criticised the focus on drastically reducing GHG emissions by specific deadlines as impractical. Abbott remarked on the economic drawbacks he perceives with the green agenda, such as rising car prices and the offshoring of emissions-intensive industries. His comments, including a quip about “maybe turning the temperature up a couple of degrees wouldn’t be a bad thing” for Canada, received notable approval from the audience. (Globe & Mail)
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