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TOP STORY
Giant REDD project Kariba left in limbo as investigation by Verra drags on
The future of a troubled REDD avoided deforestation project in Zimbabwe has been left in limbo six months after it was suspended from the Verra registry.
AVIATION
CORSIA credits could be worth over $50/t based on airline demand signals, says offset project financier
Prices for first phase CORSIA carbon credits could be valued above $50/tonne based on indications of airline demand, a project financier said Tuesday.
VOLUNTARY
Voluntary carbon credit issuances outpace retirements in Q1 to further inflate oversupply, weigh on prices -analysts
Despite a historically large number of retirements in the voluntary carbon market in Q1 2024, oversupply continues to balloon amid issuances rising at a faster clip, keeping credit prices at bay, analysts said Tuesday.
Rabobank, Plan Vivo refute Ivorian carbon credit double counting claims
Rabobank and Plan Vivo have pushed back against reporting by investigative journalism outlet Follow the Money (FTM), which revealed that Cote d’Ivoire had asked the Dutch bank to suspend its carbon credit origination activities in the country’s Nawa region over double counting fears.
BRIEFING: Additional MRV, policy support needed to scale enhanced weathering as a CDR solution, experts warn
Advancing enhanced rock weathering (ERW) as a CO2 removal solution will require addressing MRV challenges and higher policy support, especially in Europe, members of a recently formed industry alliance said Tuesday.
UN special rapporteur calls for moratorium on voluntary carbon markets to stop human rights violations
The UN’s special rapporteur on the rights of Indigenous People has called for a moratorium on voluntary carbon markets to stop human rights violations.
EMEA
FEATURE: ETS2 success hinges largely on electric vehicles, analysts say
The EU’s Emissions Trading System for road transport and heating fuels, ETS2, is set to be dominated by the transport sector, with more than half of total emissions coming from cars, trucks, and vans that will rely heavily on electrification to decarbonise, analysts say.
Newly approved EU fiscal rules will slow down energy transition, critics say
New fiscal rules approved on Tuesday by the European Parliament will make it even harder for EU member states to invest in green projects, thus slowing down the energy transition and efforts to reduce emissions, according to Greens party lawmakers and environmental groups.
Banks partner to deliver credits for home retrofit in the UK
A credit management platform developed by banks has partnered with a UK project developer to deliver carbon credits that support home retrofit at scale, in a drive to decarbonise the UK’s carbon-intensive housing stock.
Euro Markets: EUAs post modest drop as selling activity grows ahead of weekly positions data
European carbon prices fell modestly on Tuesday after earlier rising by as much as 1.4% amid early strength in energy markets, before EUAs and energy prices unwound their gains in the afternoon as traders appeared to be taking a cautious approach ahead of Wednesday’s Commitment of Traders data.
AMERICAS
Volatile day in California market as ARB workshop largely dodges main rulemaking questions
WCI traders’ expectations for more clarifications on cap adjustment details, cost containment changes, and allowance allocation considerations from ARB at Tuesday’s workshop failed to materialise, resulting in volatile price action in the secondary market.
Over $11 mln secured to oppose Washington’s cap-and-trade repeal initiative
Major US corporations are backing a campaign against a voter initiative in Washington that seeks to overturn the state’s cap-and-trade programme, with some $11 million mobilised by the time it launched last week.
US biofuels producer inks deal with agtech firm to leverage federal tax incentives
A partnership with an agricultural technology firm is set to enable a bioethanol producer with field-level assessment of carbon intensity (CI) of biofuels feedstock and the ability to leverage federal tax credits.
BC’s updated forest offset protocol mandates First Nations engagement, outlines reversal measures
Canada’s British Columbia has updated its offset regulation and published its second forest carbon offset protocol (FCOP 2.0), which mandates First Nations’ engagement across all projects and stipulates measures that could see fewer credits awarded to project developers in the event of a reversal.
Toronto innovation hub buying Canadian CDR credits for C$715 a tonne
An urban innovation hub in Toronto is buying carbon removal credits for an average C$715 ($522) each from five Canadian startups, it said Tuesday.
ASIA PACIFIC
Asia warming faster than global average, says WMO’s State of the Climate report
Asia is warming faster than the global average, with warming trends in the region nearly doubling since the 1961-90 period and the impact of heatwaves becoming more severe, said the World Meteorological Organization (WMO)’s report on Tuesday.
Indian carbon credits not just for domestic use, will be allowed to be traded internationally -official
India will allow foreign buyers to purchase carbon credits generated in the country, the administrator of the national market told a webinar this week, seeking to clarify the government’s policy after market participants had expressed confusion about the eligibility of selling units abroad.
Australian companies sign up to Qantas SAF programme
Multiple Australian companies have joined Qantas’ Sustainable Aviation Fuel (SAF) Coalition, opting to contribute to the cost of SAF rather than relying on carbon offsets, the airline said Tuesday.
Australia provides A$330 mln to decarbonise heavy industry
The Australian government has provided A$330 mln ($214 mln) in grant funding to heavy industrial facilities across the country to reduce their CO2 emissions by 830,000 tonnes per year, it announced Wednesday.
China on track to reach dual carbon targets, though coal phaseout not expected by 2040 -report
China is on track to reach its carbon peaking and neutrality targets, though the country may only see its coal consumption fall by one-third by 2040, a report has found.
INTERNATIONAL
FEATURE: Increasing conflicts are a natural consequence of worsening climate change
Climate change is exacerbating many of the conditions that fuel conflict — from drought in the Middle East worsening food insecurity and inflation, to access over strategic resources like lithium and cobalt becoming a key source of tension — amid lagging efforts to curtail emissions.
Natural capital fund launches with eyes on Article 6 market
A Singapore-based environmental venture and a global natural capital firm have partnered to launch a new fund tied to Article 6 deals with governments, the two announced Tuesday.
Academics warn of “paradox” of combining climate, industrial policies driven by populism
Industrial policy combined with climate goals can help to advance climate action, but it can also lead to protectionism and barriers that hinder clean technology progress, according to a paper published on Tuesday.
UN SG calls on G20 to lead the way on phasing out fossil fuels and increasing finance
G20 countries must lead the way in “dramatically” accelerating the fossil fuels phase-out, providing certainty and predictability to markets, and boosting climate action support for poorer countries, the UN secretary general said in a speech on Tuesday.
BIODIVERSITY (FREE TO READ)
Northern Ireland launches consultations on marine protected areas, ‘blue carbon’ plans
The government of Northern Ireland has launched consultations on two initiatives aimed at enhancing ocean conservation, as it seeks to strengthen biodiversity monitoring and hasten the restoration of marine and “blue carbon” habitats.
Australia environmental offset audit an ‘important exercise’, webinar hears, though govt refuses to release full findings
The Australian government learned important lessons from its environmental offset audit process, officials told a webinar last week, but is refusing to publicly release the full report on its findings.
INTERVIEW: African nature data platform could launch within a year
The African Natural Capital Alliance (ANCA) is spearheading efforts to establish a comprehensive nature data platform for the continent, in a bid to drive investment into nature-based solutions, an executive has said.
Financial sector urges governments to align policies with global biodiversity targets
The Finance for Biodiversity Foundation (FfB) has released a set of recommendations for policymakers to align financial flows with the Kunming-Montreal Global Biodiversity Framework (GBF).
160 financial institutions call for investment in ending plastic pollution
Some 160 financial institutions, with $15.5 trillion in collective assets under management, have called for an ambitious international treaty to end plastic pollution, in a statement led by the UN Environment Programme Finance Initiative (UNEP FI).
The Biodiversity Consultancy launches nature impact investment framework
The Biodiversity Consultancy (TBC) has developed a globally applicable tool to assess the potential impact of investments on biodiversity, seeking to catalyse flows of resources towards nature-positive outcomes.
Global standards body to start researching biodiversity disclosures
An international standard-setting body on disclosures announced Tuesday it will include biodiversity research in its priorities for the next two years, paving the way for potential new requirements on nature for investors.
Biodiversity Pulse: Tuesday April 23, 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
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 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. We are allocating a limited number of free passes to attendees representing medium- and large-sized companies that buy and retire voluntary carbon credits. If your firm is an end-user of carbon offsets and is not a major energy producer or supplier, contact us to apply for a free pass (1 per company). Otherwise, 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
New EU official appointed – The EU Commission appointed Jan Dusik as Deputy Director-General ‘Innovation, adaptation and resilience, stakeholder relations’ at DG CLIMA. In the past, Dusik held various responsibilities in the Czech Ministry of Environment, including the accession negotiations and then EU relations in the environmental sector. He also coordinated Czechia’s climate diplomacy activities during the Czech Presidency of the Council of the EU in 2022 and led ministerial negotiations during COP27 on behalf of the EU.
ECT corpse – The EU Parliament discussed the decision to withdraw from the Energy Charter Treaty, with commissioner Kadri Simson highlighting the treaty’s binding nature to fossil fuels and its role in driving up energy prices. Some MEPs advocated for withdrawing from the treaty altogether. The plenary will vote on this choice on Wednesday.
Flophaus – The “New European Bauhaus”, a pet project of European Commission President Ursula von der Leyen, “has failed spectacularly, and it is mostly her own fault,” writes Euractiv. Launched in 2019 and modelled on the German architectural movement of the 1920s, the New European Bauhaus was supposed to be the “soul” of the European Green Deal, aiming to “match style with sustainability” in von der Leyen’s own words. But former communist countries like Bulgaria and Poland resented the idea, which was conceptualised in 2021 by a group of cultural elites. Architects did not buy into the concept either, and split along progressives and conservatives. The project also lacked staffing and funding, Euractiv writes.
Norway for CCS – The Research Council of Norway has unveiled plans to invest 180 million NOK (€15 million) in the establishment of a research centre dedicated to carbon capture, transport and storage (CCS) technology. It will be called gigaCCS and will contribute to advancing Norway’s leadership in CCS expertise.
Battling the elements – UK farmers have taken a battering over the last 18 months due to exceptionally wet conditions, with many fields submerged since last autumn and livestock and crops detrimentally affected. Some 1,695.9mm of rain fell from Oct. 2022 to Mar. 2024, the highest amount record for any 18-month period in England, according to the Met Office, leading to a drastic fall in the country’s food production. Impacts on farmers include expectations for appalling harvests, continually soggy fields that prevent the use of tractors, being forced to keep livestock indoors, and concerns that excess rain will only lead to drought. Unpredictable weather also leads to issues with parasites, fleas, and insects, which bring with them diseases like bluetongue, say farmers. (the Guardian)
Greener hospitality – Whitbread Plc, the owner of the UK’s largest hotel brand — Premier Inn, is the latest member to collaborate with Zero Carbon Forum on its journey to achieving net zero in hospitality. Whitbread gained SBTi validation in 2023, and aims to be zero carbon emissions for directly controlled Scopes 1 and 2 by 2040, in addition to reducing Scope 3 emissions 90% by 2050. Some 98% of Whitbread’s UK electricity is sourced from renewable electricity, including onsite heat pumps and solar panels, whilst it also has initiatives ongoing to reduce waste and donate surplus food to charity.
New appointment – Tony Cocker, former CEO and Chair of E.ON UK, has been appointed Chair of Energy Systems Catapult, a research organisation helping to accelerate the net zero energy transition. Cocker will step into the role previously held for nine years by Nick Winser and brings with him 28 years of experience working in the energy and innovation sector. He is currently chair of Future Biogas, a developer and operator of anaerobic digestion plants, and Infinis Energy Management, the UK’s leading generator of low-carbon power from captured methane.
ASIA PACIFIC
Sunburnt country – The Australian Renewable Energy Agency (ARENA) has launched a consultation on outlining the proposed structure for the government’s Solar Sunshot programme, designed to boost the country’s domestic solar manufacturing capacity. The consultation proposes that the programme be delivered through a series of production-linked funding rounds, starting with module manufacturing, with further rounds to support other stages of the solar supply chain. The document said stakeholder feedback will help inform whether a portion of funding should be directed to capital grant funding or whether other forms of concessional support may be required, in addition to production-linked payments. The consultation period ends on May 31, with the first funding round expected to be launched in August.
Carbon bomb – The Northern Territory government in Australia has signed a sales agreement with US-based Tamboran Resources to purchase gas from the company’s development in the Beetaloo Basin from 2026, the Guardian reports. The agreement sees the Territory government purchase 40 terajoules per day from the company from 2026 over a nine-year period. The project has been described as a ‘carbon bomb’ by climate and environmental groups. A final investment decision on the gas development by Tamboran is not expected until 2026, with it depending largely on APA Group agreeing to build a pipeline to connect the development to its gas transmission assets. Gas developments in the Beetaloo are covered under the Safeguard Mechanism’s zero baseline policy, meaning all reservoir emissions from producing assets have to be net zero emissions from the first day of production.
New investment – Japan’s Mitsubishi UFJ Capital has decided to invest in Archeda, a Tokyo-based startup that provides monitoring solutions to estimate carbon data, for an undisclosed amount, it announced Tuesday. Archeda is currently working on Green Insight, a monitoring solution for forest and nature-based carbon credits using satellite data and AI, according to a company statement.
Making it public – Around 51% of the top-100 listed companies by market capitalisation in India have disclosed their Scope 3 emissions data for financial year 2023, despite it being a voluntary disclosure in Business Responsibility and Sustainability Reporting (BRSR), according to a survey conducted by PwC India. The survey also found that 44% of the top 100 companies conducted the life-cycle assessment of their products or services, 89% of the companies disclosed their information on leadership indicators, and 49% have increased their energy consumption from renewable sources, Business Standard reported. As India commits to achieve its net zero vision by 2070, the business sector is being viewed as a critical enabler in furthering this ambition, it added.
Entering partnerships – The Malaysian state of Sarawak has signed a letter of understanding (LoU) with Netherlands-based Van Hall Larenstein University of Applied Sciences to bolster forest carbon initiatives in the state, New Sarawak Tribune reported. The collaboration was formalised during a forest carbon trading mechanism training programme hosted by the university. The partnership will help the state government in making informed decisions and establishing policies that ensure the forest carbon activities in Sarawak are well-positioned within the international market and aligned with carbon standards, the Forest Department of Sarawak said.
AMERICAS
Another carve-out – Canadian PM Justin Trudeau told reporters in Saskatoon on Tuesday that Saskatchewan families would receive “unaffected” carbon tax rebates “despite the fact the [province’s] Premier is not sending that money to Ottawa right now.” The provincial government stopped collecting the carbon tax on home heating from residents after the federal government gave an exemption on home heating oil that largely helped Atlantic Canada. The announcement means consumers in Saskatchewan will receive the full federal carbon rebate without having to pay the carbon tax on home heating – something that may not go down well with Canadians in other provinces complying with Ottawa’s backstop carbon levy. (CBC)
Canada OBPS – The deadline for submitting annual reports and verification reports under Canada’s Output-Based Pricing System (OBPS) is June 1, and applications for voluntary participation for the 2025 compliance period is July 15, the federal government published on Monday. The ‘backstop’ OBPS recently tightened its standards in Nov. 2023 but only applies to a small portion of Canada’s emissions, as most provinces have received approval from Ottawa to operate their own OBPS systems, cap-and-trade programmes, or CO2 taxes, in lieu of the backstop regime.
No double dipping – The Alberta government reminded renewable energy generating projects that they cannot generate both RECs and Alberta emission offsets for the same megawatt hour, in a notice published Monday. Alberta emission offsets regulation states that offsets that are registered or serialised under any other offset or recognition scheme, or on a registry other than the TIER registry, are invalid.
Where’s the money? – The Washington Department of Ecology (ECY) on Tuesday announced a new rulemaking to establish reporting requirements for Climate Commitment Act funding recipients. The proposed rule language requires state agencies to detail fund distributions and impacts from various accounts, at least 35% of which must provide direct and meaningful benefits to disadvantaged communities. In addition, GHG reduction projects must also submit annual reports quantifying their reductions and the cost of reduction, and identify how the project compares to other similar initiatives. The ECY is accepting comments on the rulemaking documents until June 28, 2024, and will also conduct public hearings on June 5 and 13. The agency aims to adopt the rule by October, in which case it would take effect the following month.
State hesitancy, federal certainty – A suite of Illinois bills related to a state clean fuel standard, enabling climate finance, and regulating carbon capture, transport, and sequestration have slowly progressed through the state legislature as the session inches closer to its term end for the year on May 24. SB 3597, which would allow loans to counties from the Illinois Finance Authority toward clean energy infrastructure, was referred to the rules committee on Apr. 12. Meanwhile, although clean fuel standard bill SB 1556 has remained in the Senate Energy and Public Utilities Committee since Mar. 14, it now has a deadline to be considered by the committee for May 3. Meanwhile, CO2 pipeline transport safety bill HB 5814 was referred to the House Rules Committee on Apr. 15, alongside carbon capture legislation HB 569 and CO2 pipeline moratorium bill HB 4835 as of Apr. 19. US Department of Energy Assistant Secretary Brad Crabtree told the Springfield State Journal that Illinois played a major role in helping the Biden administration’s goal of net zero CO2 emissions by 2050 via carbon capture.
NH offset analysis – 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, was amended by the Senate Energy and Natural Resources Committee on Tuesday to provide a preliminary report on or before Nov. 1, 2024, and a final report on or before Nov. 1, 2025. The bill does not yet have a Senate floor date.
Cap-and-trade polluters pay – California’s Senate Bill 1497 (SB 1497), dubbed the Polluters Pay Climate Cost Recovery Act of 2024, passed the Senate Judiciary Committee on Tuesday, Politico reported. If enacted, SB 1497 would direct the California Environmental Protection Agency (EPA) to establish a Polluters Pay Climate Cost Recovery Program to mandate compensation from fossil fuel producers for the damages caused by the sale of their products between 2000 and 2020. The bill would require California EPA to determine and publish a list of responsible parties within 90 days of the effective date of the Act. Entities penalised would include businesses in the state, or outside that had sufficient contact with the state, that emitted more than 1 bln tonnes of CO2e globally during the period. The money raised would be deposited in the Polluters Pay Climate Fund to support programmes that address climate adaptation and mitigation, as well as cover damage recovery.
VOLUNTARY
Indigenous partnership – Outdoor clothing company Patagonia has launched an independent NGO, Home Planet Fund, to support local and Indigenous communities work in concert with nature to tackle the climate crisis. Everyone can donate to Home Planet Fund, which has been launched with $20 mln in seed funding from Patagonia and will identify places and practices scientifically proven to reduce global warming and other environmental threats. Local groups with thorough knowledge of their land and waters will be selected to carry out these projects through the provision of grants. Many of the supported practices may well have been carried out by Indigenous Peoples for millenia, such as traditional burnings to manage wildfires, reforestation techniques, the restoration of grasslands and wetlands, or regenerative organic farming. The fund complements Patagonia’s other environmental initiatives, such as 1%% for the Planet, whereby companies commit to donating at least 1% of annual sales to environmental organizations.
Tree planting partnership – Two Canadian organisations – The First Nations Major Projects Coalition (FNMPC) and Canada’s Forest Trust Corporation (CFT) – announced Tuesday their Forest Growth Partnership that aims to bolster environmental and forest protection efforts. Under the partnership, CFT will plant 3,000 trees to sequester approximately 820 tonnes of CO2 to offset an upcoming FNMPC conference. FNMPC is a national collective group of First Nation representatives, while CFT is a nature-based solutions social enterprise, according to a press release.
INVESTMENT
A very high bar – There are rising concerns that passive, index-tracking funds may be completely absent from the UK’s upcoming ”green” fund regime, because the new Sustainability Disclosure Requirements (SDR) may make it very difficult for any passive funds to comply. Under the Financial Conduct Authority’s new SDR, due to enter into force at the end of July, funds marked as sustainable ”should do as they claim and have the evidence to back it up”, the FT reports. However, many passive mutual funds may struggle to meet this bar set in order to tackle claims of ”greenwashing” in the investment sector. The FCA said in its SDR policy statement that its approach “puts greater emphasis on the firm’s asset selection process. Firms must select assets on the basis of evidence that they have the potential to improve in time”. Yet such a focus on selection may prove difficult for passive funds, which do not actively choose their holdings, but include every stock or bond in an index.
AND FINALLY…
Tree huggers unite! – Trees are literally life savers, as well as improving our mood and helping the environment, according to researchers who looked at the potential of urban trees to reduce heat-related mortality in London. They found that the capital’s trees have saved more than 150 lives in eight years by cutting temperatures in large parts of the city by up to 2C, while similar tree-cooling processes are occurring in other cities around the UK. These green guardians help to ease high temperatures in built up places, particularly during heatwaves, by providing shade, reflecting sunlight, and producing water vapour, the researchers found. Researchers were able to estimate the number of lives saved by looking at records of excess deaths at various temperatures and pairing that with data about how much the trees reduced temperatures.
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