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TOP STORIES
Article 6 Supervisory Body agrees on grievance mechanism procedure in “significant” milestone
The body mandated to shape UN carbon crediting under Article 6 has adopted procedures relating to grievances, notably getting rid of fees for those wanting to make complaints, in what observers have welcomed as a “significant” milestone.
‘Key things have changed’ in Article 6 negotiations since COP28, says lead UK negotiator
The UK’s lead negotiator on Article 6 carbon markets negotiations has said that key aspects of the negotiations have changed in the months since parties failed to reach an agreement last December at COP28 in Dubai.
VOLUNTARY
ICVCM decision on first eligible voluntary carbon methodologies delayed til June as Verra, ART get nod of approval
Verra and ART TREES have become the latest standard bodies to pass the Integrity Council for the Voluntary Carbon Market (ICVCM)’s conditions for eligibility, but the first approval of methodologies for the Core Carbon Principles (CCPs) stamp has been delayed until June as experts grapple with fresh complexities.
Mismatch in Rimba Raya forestry concession licence, carbon accounting area size not addressed in verification report
Controversy continues to surround the Rimba Raya Biodiversity Reserve project after Verra was unable to comment on a mismatch in the project boundary and forestry licence area, which was reportedly cited by the Indonesian government as a reason for cancelling the contract of the concession holder for the giant REDD+ project.
Carbon removals stakeholders urge immediate investment to avoid future supply shortage
Executives at two carbon removals firms have called for urgent investment to ensure the nascent technology-based sector develops fast enough for corporations to meet net zero goals.
Shell urges shareholders to vote down tougher Scope 3 emissions targets as it unveils bumper oil and gas profits
Shell unveiled Thursday better than-expected profits of $7.7 billion in the first quarter, and announced it would buy back $3.5 bln worth of shares over the next three months, as it sought to ward off a showdown with investors over its Scope 3 emissions.
Agri-carbon investor adds 300k hectares in Ukraine to voluntary credit programme
A European climate tech investor, specialising in decarbonising agriculture, has added 300,000 hectares of farmland in western and central Ukraine to its carbon programme, which will then be certified for voluntary soil-based credits from more sustainable practices.
EMEA
Euro Markets: EUAs post second-biggest daily increase of the year as buyers return in force
European carbon prices jumped sharply on Thursday to post their second-biggest one-day gain of the year as speculative traders were said to be further reducing their short positions after Wednesday’s Commitment of Traders data showed investment funds had trimmed their overall bearish bets for a third week in a row.
ANALYSIS: ‘Old habits die hard’ as polluters continue to surrender EUAs in April despite deadline shift
Compliance entities have continued to surrender large volumes of European carbon allowances in April despite the deadline moving to the end of September this year, with analysts attributing this to a case of ‘old habits die hard’ given the limited financial benefit for giving up the permits in advance.
German govt notified Brussels of intent to cancel up to 12 mln EUAs due to coal-fired generation capacity closures
The German government has notified the European Commission that it intends to voluntarily cancel up to 12.25 million EU Allowances to counter the market impact from the 2022 closure of electricity generation capacities at two ETS installations in the country.
EU green steel scale-up is stymied by higher cost of materials, study finds
Inflation behind sustainable supply chains is threatening the economic viability of producing green steel in Europe, requiring far higher taxes or incentives to drive the shift from grey steel, or more imports of iron ore, according to research published on Thursday.
AMERICAS
WCI Markets: CCAs pushed lower, WCAs driven up on low volume
California Carbon Allowance (CCA) prices trickled lower through the week as traders said option strategies were driving wide day ranges, while Washington Carbon Allowances (WCA) rose on ongoing muted activity.
California March emissions drop to record lows as renewables output rises, natural gas retreats
California electricity sector emissions continued to fall to record lows in March, as renewables expanded their share of the state’s energy supply, while natural gas again receded, data published Wednesday showed.
Opposition towards avoided biomethane crediting under California’s LCFS persists
Ending factory farm biogas crediting under California’s Low Carbon Fuel Standard (LCFS) is a top priority for a large share of the stakeholders commenting on a proposed amendment package for the scheme.
Oregon Clean Fuels Program surplus credit bank crosses 1 mln in Q4
With the highest quarterly net credits in programme history, Oregon’s Clean Fuels Program (OCFP) unit surplus soared above 1 million for the first time, according to state data published Thursday.
DOE announces $500 mln for CCS transport infrastructure projects
The US Department of Energy (DOE) announced Thursday that it would provide up to $500 million to support the nation’s carbon capture and storage (CCS) transport system, as it continues to ramp up its support of the technology.
Multiple developers earn concessions from Brazilian state for REDD+ projects
Five project developers have earned concessions worth a total of over 11 million hectares from a heavily forested Brazilian state as it continues efforts to develop its carbon market.
Canada’s GHG emissions increase 1.3% in 2022, land use sector jumps 264%
Canadian greenhouse gas emissions from energy, industry, agriculture, and waste sectors increased 1.3% year-on-year in 2022, although land use and forestry (LULUCF), excluded from the national totals, jumped 264% YoY.
ASIA PACIFIC
Australia developing savanna fire management ACCU method that credits sequestration for the first time
The Australian government is developing two new savanna fire management (SFM) method proposals, including one that will propose to credit sequestration in living vegetation for the first time, a department spokesperson confirmed to Carbon Pulse.
NZU stockpile grows by 9 mln, but likely to shrink substantially
The stockpile of privately held NZUs has grown by some 9 million units, according to government figures, however this is likely fall dramatically following the upcoming May 31 surrender deadline for emitters.
Korean tech firm launches carbon verification services, supports exporters to meet EU data disclosure rules
The tech arm of a South Korean conglomerate has launched verification services to help domestic emitters cope with tighter data disclosure requirements proposed by the EU, it announced Thursday.
Global carbon capture tech “prohibitively expensive”, Indian companies should use domestic solutions instead -official
Carbon capture technologies offered by foreign companies are prohibitively expensive, however, the use of domestic technologies can help Indian companies bring down the costs of decarbonisation drastically, an official told a webinar Thursday.
Clean Energy Regulator auditing HIR projects, NGER reports
A compliance update from the Clean Energy Regulator (CER) Thursday said it had begun gateway audits on several human-induced regeneration (HIR) carbon projects, as well as audits of a number of emissions reports under the NGER scheme.
Former NZ climate change minister announces raft of appointments after bidding farewell to politics
New Zealand’s former minister for climate change and the environment and co-leader of the Green Party has been appointed to multiple roles, he announced, after giving his valedictory speech to parliament this week.
INTERNATIONAL
Adjusted carbon credits don’t necessarily equate to high quality, say experts
Credit quality is more dependent on the certifying carbon standard and methodology than whether it has been authorised for corresponding adjustments by a host country government under the Paris Agreement, according to speakers on a webinar.
World could miss Paris temperature target by factor of 100% -report
The world is far off track to keep warming to 1.5C above pre-industrial levels or the temperature needed to avoid catastrophic climate change, according to research released Thursday.
Oil and gas, agriculture lobbying to weaken international methane rules, NGO claims
The oil and gas and agriculture industries are consistently, and successfully, lobbying to weaken regulations to cut methane emissions worldwide, an NGO claims in research published on Thursday.
SHIPPING
Industry group says new technologies may cut shipping methane emissions by 80%
A series of newly-developed methane abatement technologies can help cut emissions on ships by up to 80%, an industry initiative announced on Friday.
BIODIVERSITY (FREE TO READ)
PepsiCo biodiversity disclosure proposal receives 18% of votes
Approximately 18% of shareholders at drinks giant PepsiCo voted in favour of a resolution to disclose its biodiversity impacts on Wednesday, Carbon Pulse has learned.
ANALYSIS: More nature-related shareholder proposals trigger corporate resistance
Investor interest in nature has ramped up in this year’s voting season, boosted by some of the first calls for standard-aligned biodiversity disclosures, with financiers hailing a surge in awareness despite more corporate resistance.
Assessments of biodiversity impacts of corporate carbon credits revealed
US corporations Delta Air Lines and Chevron are among the companies purchasing low percentages of carbon credits associated with stronger biodiversity scores, according to a study that relies on a new metric.
Mengniu releases dairy industry’s first nature-related report based on TNFD recommendations
A Chinese dairy giant has become the first company in the industry to release its nature-related information disclosure on risks and impacts based on the Taskforce on Nature-related Financial Disclosures (TNFD) guidelines, the firm announced Thursday.
Scottish consultancy has 7,000-ha pipeline of peatland restoration projects
Caledonian Climate has approximately 7,000 hectares collectively of peatland restoration projects in the pipeline with clients for 2024-25 in Scotland, many of which will probably be eligible for generating biodiversity credits, an executive has said.
Biodiversity Pulse: Thursday May 2, 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 imminent launch of the pilot ETS in Q4 2024 and a burgeoning voluntary carbon market in the country, this inaugural event will give attendees an understanding of the significant impact these schemes, as well as the EU’s CBAM, will have on your business. Carbon Forward Turkiye also offers a chance to position and network with peers, policymakers, corporates, trade bodies, and analysts. Secure your spot
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…
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
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BITE-SIZED UPDATES FROM AROUND THE WORLD
INTERNATIONAL
Steel growth ahead – The world’s second-largest steelmaker, ArcelorMittal, expects global steel demand outside China to rise by 3-4% this year, it reported in Q1 earnings on Thursday, according to Reuters. The company registered $1.96 bln in core profit in Q1, above the average forecast in a company poll of $1.81 bln, but below the $2.14 bln reported in the same period last year. Improved results in North America, Brazil, Europe, and India, and from joint ventures, accounted for the profit and helped to offset lower mining segment results, Reuters reported. Low inventories, especially in Europe, have set the foundation for a rebound in demand, ArcelorMittal said.
Need some PCP – The Philippines, in collaboration with the Forest Foundation Philippines and the Canadian government, has initiated the Philippines-Canada Partnership on Nature-based Solutions for Climate Adaptation (PCP4NbS). This partnership aims to enhance the country’s resilience, particularly among rural and indigenous women, against climate change impacts. It involves sharing knowledge and resources to assess protected areas and apply scientific approaches to ensure ecological integrity. Department of Environment and Natural Resources (DENR) Secretary Maria Antonia Yulo-Loyzaga stressed the importance of adaptation capacity-building, citing the urgent need highlighted in the National Adaptation Plan (NAP). The NAP suggests that inaction on adaptation could cost about 8% of GDP by 2030. The DENR is adopting a comprehensive approach towards adaptation planning and is committed to achieving wins in biodiversity conservation, climate adaptation, gender equality, and community resilience. (PNA)
Urban innovation – Digital solutions that manage consumption patterns and optimise infrastructure can play a significant role in reducing emissions from cities, which is essential for the world to meet its energy and climate goals, according to a new report by the International Energy Agency presented at the G7 Climate, Energy and Environment Ministerial Meeting this week in Turin. Cities need to raise their level of ambition in areas such as energy efficiency to meet targets set at COP28, and more cities need to advance plans on sustainability and CO2 reduction targets, the report finds. Cities currently account for around three-quarters of global energy consumption and 70% of GHG emissions, and their contribution is set to rise, with urban growth by 2050 set to be equivalent to adding the combined land area of Germany, Italy, and Japan. Despite this, only one in five cities has set a target to reach net zero emissions. The IEA finds that digital solutions such as those that make electricity networks more flexible can help, as well as strengthening distribution grids, and better alignment of planning on areas like EV chargers and renewable assets to avoid the risk of blackouts.
EMEA
UK infrastructure finance – The state-owned UK Infrastructure Bank has invested £25 mln of direct equity into Scotland-based battery manufacturer Invinity Energy Systems, in support of the commercial development of longer-duration energy storage, the bank said on Thursday. Invinity makes vanadium flow batteries which are durable, easy to deploy at scale, have lower levels of degradation compared to other storage technologies, and do not suffer from thermal runaway, according to the bank. This makes them well suited to a range of grid-scale battery applications. The announcement came a day after the UK Infrastructure Bank and Scottish National Investment Bank announced an MoU to work more closely on attracting private investment with wider social, environmental, and economic benefits.
Do No Significant Harm – The EU Commission published on Tuesday a call for views on the application of the ‘Do No Significant Harm’ (DNSH) principle to the Social Climate Fund, which was created to support the most vulnerable citizens and small businesses through the green transition. The fund will pool revenues from the auctioning of allowances from the ETS2 as well as 50 million allowances from the existing EU ETS. The DNSH principle aims to ensure that no EU-financed activities have a significant negative impact on climate and environmental objectives. It was introduced by the EU Taxonomy and already applies to several EU funds, such as the EU Cohesion Funds, the Recovery and Resilience Facility, and InvestEU.
Long way still to go – Funding for climate tech startups in Africa from the private sector is growing, with businesses raising more than $3.4 bln there since 2019, though there’s still a large gap to target, with the continent requiring $277 bln annually to meet its climate goals for 2030, the Independent reports. To unlock financing and fill the gap, African countries need to address risks like currency instability that can reduce investor appetite, while investors also need to expand their scope of interest to more sectors like flood protection and heat management, and use diverse funding methods. Climate tech financing is performing strongly on the continent with respect to other sectors. The capital raised by climate tech startups last year was more than a third of all funds raised by startups in Africa in 2023, placing climate tech second to fintech, a more mature sector. Last year, climate tech startups in Africa raised $1.04 bln, a 9% increase from the previous year and triple what they raised in 2019, according to the funding database Africa: The Big Deal.
ASIA PACIFIC
I don’t think so – Efforts made by the US and Europe to curb China’s dominance in green technologies may impede the progress in combating global warming, said China’s climate envoy, according to Bloomberg. US Treasury Secretary Janet Yellen recently called out China’s ramped-up production in solar energy, electric vehicles, and lithium-ion batteries, which could distort global prices, while the EU has launched probes into clean energy and electric cars. “We need to maintain low costs, otherwise nobody is going to be able to afford the energy transition,” Liu Zhenmin, appointed in January as China’s special envoy for climate change, said in an interview. “What I’m worried about is if the US and EU continue to insist on that approach, it would result in a delay in the substitution of fossil fuels by renewables globally,” Liu said. Relying on technology made outside China could lift global energy transition costs by as much as $6 trillion, according to a Wood Mackenzie analysis.
Flexibility – The Australian Renewable Energy Agency (ARENA) has awarded A$3.5 mln ($2.2 mln) to energy network company United Energy to explore solutions for managing flexible electricity demand in Victoria, it announced. United will be trialling new and novel ways to integrate more renewables and manage Victorian system security challenges associated with minimum system load. The A$8 mln project will see two trials managing the challenges associated with two-way electricity flows from renewable energy sources like rooftop solar, and identify capabilities of low voltage distributed energy resource management need to create a seamless flexible connection experience for customers at scale, ARENA said.
AMERICAS
AND FINALLY…
More bread for bread – A loaf of bread in the UK is about to get more expensive, as companies will have to rely on grain imports following a record wet winter in the country, The Guardian reported. The UK’s grain harvests are expected to be very small in July and August, said George Weston, head of Associated British Foods, which owns bread brand Kingsmill as well as Ryvita, Twinings tea, and Dorset Cereals. The high cost of UK grains could be offset by larger harvests in other countries, but that remains to be seen, he added. The high rainfall this year made it harder for farmers in the UK to plant crops such as potatoes, wheat, and vegetables. Oilseed rape crops instead are rotting, causing yields to drop by as much as 38% compared to 2023 and 54% compared to the average since 2015.
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