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TOP STORY

Japan to allow international carbon removal projects in domestic GX League

The government of Japan has opened the door to the use of international credits in its domestic carbon market, adding four types of eligible carbon removal projects to the GX-ETS.

AMERICAS

Potential market rules worry traders as allowances sell off on release of ARB workshop slidedeck

California regulator ARB will discuss potential changes to market rules surrounding corporate disclosures and holding limits in their public rulemaking cap-and-trade workshop scheduled Tuesday, according to a slidedeck posted Monday that sparked a sell-off in the secondary market as traders were disappointed over the lack of clarity on where proposed emissions cap adjustments would originate from and cost containment Tier level changes.

DOE dishes out $11 mln for CCS transport infrastructure projects

The US Department of Energy (DOE) announced Monday the allocation of $11 million to four CO2 transport projects across multiple states, as the agency continues to enable large-scale carbon capture and storage (CCS) initiatives.

Opposition persists as US CO2 pipeline developer reattempts to secure permit

Representatives of CO2 pipeline developer Summit Carbon Solutions (SCS) testified before the North Dakota Public Service Commission (PSC) on Monday as the company once again attempts to secure a permit for pipeline construction in the state.

California carbon offset greenwashing bill swiftly heads to final Senate committee vote

A Senate bill eyeing more stringent oversight over the purchase and sale of carbon offsets received no public testimony during its third Senate committee hearing on Monday, and now awaits a vote by committee members on whether it will advance to the Senate floor.

California diesel sales clock record January level since 2008, gasoline continues to decline

California diesel sales in January rose to their highest volumes for that month since 2008, while gasoline sales and emissions decreased year-on-year from 2023, according to state data released Monday.

RGGI Markets: Compliance demand holds benchmark prices north of $20

Compliance entities continue to support RGGI allowance prices even as transaction volumes in the secondary market declined through the week, with participants reporting lower snow levels likely impacting imported hydro power.

Paraguay’s carbon market law a “more efficient” way to get cash from national parks, says minister

Paraguay’s new voluntary carbon market law will help the country monetise its natural parks, a top minister told the 2024 Spring Meetings of the International Monetary Fund (IMF) in Washington DC, after changes to the additionality section in the law’s first draft appeared to expand the lands eligible for carbon projects.

EMEA

UK to begin consultation on including maritime emissions in ETS shortly, but no deadline for free allocation response

The UK government will soon begin a public consultation on how best to include maritime emissions in the scope of the UK ETS, a senior official said on Monday, without indicating when the government would respond to recently completed consultations on other potential changes to the country’s stand-alone carbon market.

UK’s ETS for waste risks raising costs for local govts and pushing rubbish to landfill, experts warn

The extension of the UK ETS to include emissions from waste risks imposing significant new costs on cash-strapped local council authorities and pushing more rubbish to landfills, unless the government passes supporting policies within the next two years, experts said on Monday.

Europe’s ‘State of the Climate’ report sees global warming impacts getting worse

Europe was severely impacted by climate change last year, according to data released today by the EU’s Copernicus Climate Change Service and the World Meteorological Organisation, and things seem only to be getting worse.

Polish cement plant advances major CCUS investment

A Polish cement plant is advancing plans for the large-scale installation of carbon capture utilisation and storage (CCUS) technology at its facilities.

Europe’s LNG demand likely to peak in 2024, regulators say

Demand for liquefied natural gas (LNG) in Europe is likely to reach its peak this year due to structural demand reduction and decarbonisation policies, the EU’s energy regulators have said, adding to downward pressure on carbon prices in the short term.

European LNG operator eyes diversification into CO2 and ammonia -media

A European operator of LNG terminals is looking to expand into CO2 and ammonia processing as it seeks to capitalise on new sources of income in the energy transition.

Climate tech, greener industry play key role in European venture capital recovery

Deals in climate tech and industrial decarbonisation played a key role in driving the recovery of European venture capital in Q1 2024, as investors seek opportunities to tackle the climate crisis, according to an analyst report.

Euro Markets: EUAs slide under selling pressure along with energy, while UKAs edge higher on compliance demand

Carbon prices in Europe began the week on a sharply bearish note in line with wider energy markets, encouraging traders to build additional short positions but also highlighting the degree to which EUAs are being driven by fluctuations in natural gas, while UKAs shrugged off the bearish sentiment to rise amid increased compliance demand.

ASIA PACIFIC

Australia Market Roundup: Capacity Investment Scheme targets 6 GW of renewables in May, ACCU issuance increases

The federal government has announced 6 gigawatts of new variable renewable energy projects will go out for tender in May, as part of its Capacity Investment Scheme (CIS).

Japanese engineering consultancy to explore early-stage nature-based projects

A Tokyo-listed engineering consultancy has teamed up with a climate tech firm to secure credits from nature-based solutions (NbS) around the world through early investments.

INTERNATIONAL

Half of the world’s 100 largest private firms unprepared for climate goals -report

Most of the private companies worldwide are unprepared to respect their country’s climate goals and the Paris Agreement to keep the global increase in temperature below 1.5C compared to 1990 levels, according to a report released on Monday.

Group of 17 global banks joins call for international treaty to end use of fossil fuels

Seventeen banks globally have joined calls for a Fossil Fuel Non-Proliferation Treaty to end the use of fossil fuels and have called on the financial industry to follow their example.

VOLUNTARY

VCM Report: Creeping optimism in future of voluntary market fails to translate into higher prices

Optimism is creeping back into the voluntary market, although prices and liquidity were steady last week, and some standardized prices slipped lower from already very weak levels.

INTERVIEW: Technology transfer key to boosting Africa’s voluntary carbon market

Africa’s voluntary carbon market needs technology transfer from the Global North to keep up with increasingly demanding carbon credit methodologies and to demonstrate integrity, a Ghanaian advisor to the International Monetary Fund (IMF) told Carbon Pulse Thursday on the sidelines of the IMF Spring Meetings in Washington DC.

Donors push “exotic” clean cookstoves in Africa instead of valuing carbon projects that work, says envoy

Wealthy donor countries are too set on “exotic” carbon projects like clean cooking in Africa and do not pay enough for more “pragmatic” solutions, according to a Sierra Leonian climate envoy speaking Thursday at the 2024 Spring Meetings of the International Monetary Fund (IMF) and World Bank in Washington DC.

Carbon removals registry Isometric issues first batch of credits

Carbon dioxide removal (CDR) registry Isometric launched on Monday, with the first batch of credits issued to members of the Frontier buyers’ club.

Private companies lag on net zero commitments, report says

Public companies are well ahead of their private counterparts when it comes to setting emissions reduction targets and net zero pledges, with a far larger proportion of the latter yet to make any, according to a report released Monday.

BIODIVERSITY (FREE TO READ)

INTERVIEW: Mongolia government, Nature Conservancy launch $198 mln conservation finance scheme

A partnership led by the government of Mongolia and The Nature Conservancy (TNC) has raised $198 million in commitments towards conservation and sustainable communities, with similar initiatives in up to 20 other countries in the pipeline.

Business alliance launches to enhance biodiversity strategies, hasten nature disclosures

A European business network and a US-headquartered conservation NGO have kickstarted an initiative to foster the integration of biodiversity in corporate decision-making, with nine corporations joining the programme ahead of its general launch next year.

IUCN releases guidelines for monitoring biodiversity in protected areas and OECMs

The International Union for Conservation of Nature (IUCN) World Commission on Protected Areas (WCPA) has released a set of standardised guidelines to develop biodiversity monitoring programmes in Protected Areas (PAs) and Other Effective area-based Conservation Measures (OECMs) worldwide, providing a snapshot of the most advanced tools and technologies.

ICYM

Energy Transition Accelerator announces steps forward, US to introduce offset guidance soon

The Energy Transition Accelerator (ETA), a US-led jurisdictional carbon crediting programme, on Friday detailed its recent developments, while the top US climate envoy said that federal guidelines for the use of offsets will be published in the coming days.

Cote d’Ivoire asks Rabobank to suspend carbon credit activities in country amid numerous allegations

The government of Cote d’Ivoire has reportedly asked Dutch bank Rabobank to suspend its carbon credit origination activities in the Nawa region of the country, claiming that emissions reductions previously sold to buyers including Microsoft were state property and contracted to another party.

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Job listings this week

• *Asia-Pacific Environmental Markets Correspondent, Carbon Pulse – Asia/Australia
• *Environmental Markets Correspondent, Carbon Pulse – Latin America
• ETS & CORSIA Manager, easyJet – Luton, UK
• Associate Director, Carbon Markets Technical Expert, Pollination Group – Singapore/Sydney
• Natural and Working Lands GHG Data Specialist (Environmental Specialist 4), Washington State Department of Ecology – Lacey
• Senior Program Officer, VCS Methodologies, Verra – Remote
• Senior Project Manager Nature Restoration/Forestry, Covalent Land Australia – Remote

*Premium listings

See all listings or post a job

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CONFERENCES

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

and much more! Register here!

Carbon Forward North America – June 11-12, Toronto and Online: 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

Powerful friends, part 1 – Advisers to former US climate envoy John Kerry lobbied the Science-Based Targets initiative (SBTi) to support the use of carbon credits in corporate climate strategies, the FT reports. In mid-April, the SBTI’s board of trustees proposed that voluntary credits could be used to offset corporate Scope 3, or value chain, emissions. This led SBTi staff to call for its CEO to be sacked, after which Luiz Amaral reiterated that the organisation’s standards have not changed. This US lobbying effort spanned over two years and was connected to the Karry-conceived clean energy scheme – the Energy Transition Accelerator (ETA) – aimed at helping developing countries transition from fossil fuels, the FT said. Despite SBTi’s initial resistance due to concerns about the effectiveness and integrity of carbon credits, they recently shifted to allow companies to offset their pollution using these credits. The backing for this push came from significant financial supporters of SBTi, including the Bezos Earth Fund and the Rockefeller Foundation, the FT added. This move is seen as a boon to the US-driven ETA project, which seeks corporate buyers for carbon credits. Companies including General Motors had raised the SBTi’s opposition to credits in conversations about joining the Energy Transition Accelerator, the FT reported.

Powerful friends, part 2 – The FT also revealed that in a governance reshuffle intended to signal independence and to reflect its growth, SBTi incorporated as a limited company last year and added independent trustees to its board. A number of board members retain ties to companies and philanthropists who have an interest in the development of carbon credit markets. One independent trustee, Ivan Duque, the former Colombian president, also holds an unpaid position on the steering committee of the African Carbon Markets Initiative, which seeks to scale the carbon credit market on that continent. Another significant backer of carbon offsets is SBTi board member Maria Mendiluce, chief executive of We Mean Business, a founding partner of SBTi, according to people familiar with the leadership. Representatives for Duque and WMB did not provide a comment to the FT. A document drafted in October by Nigel Topping, the former WMB chief executive and UN high-level climate action champion at COP26, proposed a “counter narrative” campaign to build confidence in global carbon markets. This included the need for “clear, simple and legitimate recognition” by SBTi of credits in corporate plans, which the document, seen by the FT, suggests could be promoted by industry groups, commodity traders, airlines and investigative journalists. Topping is a shareholder of Xpansiv, which runs a global carbon trading exchange, and a director of ICE Benchmark Administration, part of exchange operator ICE. The campaign was never officially created following the proposal, Topping told the FT. Those who held a “puritanical view” against carbon credits should come up with alternative ways to raise the trillions of dollars in financing needed to help the Global South adapt to climate change, he said.

EMEA

H2 ferries – Norwegian ferry company Torghatten Nord has ordered two of the world’s largest hydrogen ship to operate on the country’s longest ferry route between the mainland and the picturesque Lofoten Islands. The two ferries will run on compressed green hydrogen produced by local developer GreenH in the mainland town of Bodo and be powered by 6.4 MW of fuel cells, with delivery set for 2026. The two 117-metre vessels are each able to hold up to 120 cars and 599 passengers and were designed by the Norwegian Ship Design Company (NSDC). (Hydrogen Insight)

Aviation additions – UK aviation emissions are on track to return to pre-pandemic levels, according to analysis by Transport & Environment (T&E), with many budget airlines now emitting more than they ever have and British Airways still dominating the top spot as most polluting airline. Nearly 940,000 flights departed from UK airports in 2023, producing 32 Mt of CO2 emissions, which is up 23% on 2022 levels. The country is fast-approaching pre-pandemic levels of flying as 2023 saw 88% of 2019 flight numbers, and 89% of its CO2e, which runs counter to the government’s pledge to never exceed 2019 pollution levels again. Budget airlines in particular are seen to be driving the growth, with Ryanair, easyJet, and Jet2.com emitting 13.5%, 4.8%, and 26.3% more than their 2019 emissions respectively. In the UK, airlines are subject to having to pay for CO2 through either the UK ETS or via fuel duty. T&E is calling for the UK to introduce a kerosene tax and for the UK ETS to be extended to cover all departing flights.

Floating turbines – Europe’s largest floating offshore wind farm has been approved off the Aberdeenshire coast in Northeast Scotland, in what will trigger up to £3 bln in investment and present an important jobs boost for the region. Green Volt is owned 50% each by Aberdeen-based Flotation Energy and Norwegian firm Vargronn and is Europe’s first commercial-scale floating windfarm, consisting of 35 turbines with capacity of 560 MW. The project has been described as an ”essential stepping stone” for the industry in scaling up from small-scale projects to gigawatt-size developments. Green Volt is expected to reduce CO2e by 1Mt a year and to contribute to the UK goal of halving GHG emissions by 2030.

Bygone relics – The sole survivor of Britain’s coal-fired power sector is set to close for good this year as the country meets its pledge to ban coal use. The Ratcliffe-on-Soar coal plant in Nottingham will close down around the end of September, with a single turbine currently left operating and about 350 engineers left working there on shifts, down from around 3,000 people in its heyday. At its peak in the 1920s, the UK coal industry employed almost 1.2 mln people and coal provided the majority of fuel used to produce electricity in the UK until 1994, but over the past decade, coal power in the UK has been pushed to the margins by costly carbon taxes and the rise of cheap renewables. Coal accounted for just 1% of power generated in the UK last year, with the large coal stations of the past either having closed or switched to alternative power sources such as biomass. (the Guardian)

Port CO2 – CO2 emissions in the port of Rotterdam decreased by 10%, or 2.2 mln tonnes, in 2023 compared to 2022 levels, meaning that CO2e dipped below those of reference year 1990 for the first time. The decline was mainly caused by the two coal-fired power stations on the Maasvlakte, which emitted a total of over 2 Mton (38%) less CO2 last year than in 2022. Meanwhile, emissions from the three gas-fired power plants in the port increased slightly by 0.1 Mt, but taken together, the five energy plants produced 20% less electricity from fossil sources. In the Netherlands overall, fossil-based sources produced 12% less electricity in 2023. while the share of electricity from renewable sources increased. To decrease CO2e in the port by 55% by 2030 compared to 1990, in accordance with European and Dutch ambitions, the port must achieve a CO2 reduction of 9.3 Mt by 2030. Current projects to reduce the port’s emissions come from efforts to capture CO2 and halt the use of coal in producing electricity, though the production of biofuels actually leads to more CO2e within the complex. CCS projects, closing coal power plants, and hydrogen initiative will be key in reaching the 2030 goals. (Hellenic Shipping News)

Total LNG – French major TotalEnergies and OQ, the Oman National Oil Company, announced a Final Investment Decision (FID) Monday Apr. 22 on the Marsa LNG project, In a statement, the French company said it had signed a Sale and Purchase Agreement (SPA) with Oman LNG to offtake 0.8 Mtpa of LNG for 10 years from 2025. TotalEnergies holds an 80% stake in the joint company Marsa Liquefied Natural Gas (“Marsa”), with the remaining 20% owned by OQ. The Marsa project combines upstream production of 150 Mcf/d of natural gas and downstream gas liquefaction of 1 Mt/y capacity as well as a dedicated 300 MWp PV solar plant that will be built to cover 100% of the annual power consumption of the LNG plant, the two companies said.

ASIA PACIFIC

Going down – Australia’s Queensland has achieved its 2030 emissions reduction target of 30% below 2005 levels eight years early, the government announced Monday. Referring to federal government data, the state said it had achieved a 35% reduction in emissions in 2030. The government said the data provided proof of the success of its vegetation management laws, which have reduced the amount of land clearing carried out across the state and resulted in significant emissions reduction in the land sector. The announcement follows the government legislating its 2035 emissions reduction target of 75% below 2005 levels by 2035 on the way to net zero by 2050, as well as its renewable energy targets.

New investment – Japanese engineering service provider JGC Holdings has decided to invest in AP Ventures Fund III, a venture capital fund in the UK, in order to explore technologies in the fields of hydrogen, ammonia, and CCUS, it announced Monday. The AP Ventures team has since 2013 been investing in the hydrogen sector,  and is building a hydrogen value chain around the world. Through the first two funds, AP Ventures has invested in more than 20 promising companies while accumulating relevant knowledge, the statement said.

More SAF collaboration – Wagner Sustainable Fuels has begun the design and construction of Australia’s first steady supply of SAF within the fuels’ precinct at the Wellcamp Airport in Toowoomba, Queensland, to blend SAF to international aviation regulations, a press release from industry representative body Bioenergy Australia said Friday. Wagner is collaborating with Boeing to add to Australia’s sustainable aviation fuel (SAF) production base, to help the nation and airline industry decarbonise. 

Sometime soon – Australian aircraft company FlyonE announced its transition to electric aircraft as part of its flight route expansion in Western Australia to 17 new destinations on Monday. However, the company did not specify the date at which its present fleet, of which emissions are currently offset up to 2 tCO2 per flight, would transition to electric options.

Exploring options – Indonesia and the EU are exploring opportunities to cooperate, including on carbon trading, Indonesian Finance Minister Sri Mulyani said following a meeting with EU Commissioner Wopke Hoekstra in Washington DC, Antara News reports. Mulyani said the transition to renewable energy, climate change, and carbon trading ‘filled the discussion space’. She also expressed appreciation for the EU providing financial support to Indonesia’s Just Energy Transition Partnership. Mulyani was in Washington to attend the World Bank-IMF Spring Meeting to seek out investment opportunities from the European Investment Bank for green and sustainable financing in Indonesia.

AMERICAS

VOLUNTARY

Off the offsets – Interface, a carpet tile manufacturer, has decided to cease investing in carbon offsetting projects from Apr. 30, shifting focus towards direct carbon reductions and carbon storage solutions. By 2025, funds currently allocated for carbon offsetting will be redirected towards innovation in raw material usage, increased recycled content, bio-based materials, and decarbonisation partnerships within the supply chain. This move is part of Interface’s long-term strategy to become carbon negative by 2040, a goal that aligns with the ambitious targets validated by the SBTi, including halving Scope 3 emissions and reducing emissions from business travel and commuting by 30% by 2030. Interface seeks to develop products with the lowest carbon footprint in the industry, fostering a supply chain with a positive impact on both people and the environment, as outlined in its Climate Take Back strategy.

INVESTMENT

AND FINALLY…

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