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TOP STORY
Two voluntary carbon project financiers report combined $72 mln in Asian investment losses
Two Toronto-based voluntary carbon project financiers on Wednesday reported a combined $72 mln in unrelated losses to their investments in Asia, raising fresh warnings for backers of such initiatives.
VOLUNTARY
Microsoft emissions up 29.1% from 2020, contracts over 5 mln carbon removal credits in 2023
US tech giant Microsoft saw an aggregate 29.1% increase in Scope 1-3 emissions in 2023 relative to its 2020 baseline, largely driven by data centre construction, alongside procurement of over 5 million tonnes in multi-year carbon removal offtake agreements, according to its annual sustainability report published Wednesday.
Voluntary carbon standard releases methodology to credit electrification in shipping
A large voluntary carbon credit issuing body has released a methodology crediting the electrification of energy supply for ships when shore-side or offshore, active from Wednesday.
Malaysian carbon project developer admits local engagement work has been insufficient
A controversial carbon project developer in Malaysia on Tuesday said it has spent over a year on its free, prior, and informed consent (FPIC) process with local residents, but acknowledged that some affected communities still do not know about its work.
Fintech startup eyes Islamic finance riches after securing fatwa for carbon credit investment product
A startup focused on exchange traded voluntary carbon investment products has secured a fatwa for a carbon credit asset class that it hopes will tap into the deep pockets of the Islamic finance market.
Irish platform for carbon credits with biodiversity co-benefits launches
Marketplace ConnectGreen on Wednesday launched a platform for voluntary carbon credits with biodiversity co-benefits focused on smallholder projects in the Republic of Ireland.
AMERICAS
Q2 WCI auction postponed due to “technical difficulties”, to be rescheduled
The joint California-Quebec carbon allowance auction for Q2 was postponed Wednesday due to “technical difficulties”, regulators announced.
Profitability of carbon projects over logging in Peru hinges on bankable integrity claims -study
Peruvian forest concessions generating carbon credits could be more lucrative than those reserved for logging, provided that the country’s improved forest management (IFM) credits can command a premium for high integrity, according to a study.
Rural electricity cooperative files stay motion against EPA power plant regulations amidst growing challenges
A trade association representing hundreds of local electric cooperatives filed in federal court this week a motion to halt the implementation of controversial US Environmental Protection Agency (EPA) power plant emissions regulations, amidst ongoing legal challenges since the rules were published.
ASIA PACIFIC
Asian carbon project developers say caught between evolving regulations, updating methodologies
Voluntary carbon project developers are struggling to keep up with the rapidly changing landscape of new methodology updates and emerging government regulations in Asia, participants told a conference this week.
State-owned oil major determined to make Malaysia regional CCS hub
Malaysian oil and energy company Petronas intends to provide solutions to decarbonise hard-to-abate sectors and establish the Southeast Asian nation as the regional hub for carbon capture and storage (CCS), it told a conference this week.
Malaysia’s Sarawak to introduce 5% tax on carbon credit sales
The Malaysian state of Sarawak will tax revenue from carbon credit sales by 5%, the government announced Wednesday.
Japanese developer partners with government-backed agricultural organisation on rice projects
A Japanese carbon project developer has partnered with a regional government-backed agricultural organisation to promote credit-generating rice projects, as it seeks to broaden its presence in Vietnam’s voluntary market.
Indonesia expands CCS plans with US, Korean oil giants
Indonesia is expanding its carbon capture and storage (CCS) plans after its state oil company signed an agreement with US oil giant ExxonMobil and South Korea’s KNOC, while the former two also signed another agreement to develop a CCS ‘hub’ in the Sunda and Asri basins.
Indian renewable company signs $1-bln deal to develop energy transition projects
An Indian renewable energy company has signed a $1 billion MoU to finance and develop energy transition projects both within India and globally.
EMEA
FEATURE: UK’s local govts face hefty carbon pricing bill for waste incineration
The UK’s local governments are anxiously looking to London to enact policies that could help to clean up household rubbish in the coming years, in the hopes of minimising hefty new carbon costs for waste incineration.
‘Over-protection and over-regulation’: Think tank issues scathing criticism of EU Green Claims Directive
With the Green Claims Directive, EU legislators seem to be mistakenly seeking to regulate the voluntary carbon market rather than laying down rules for companies to communicate their green credentials to consumers, according to a leading climate think tank.
Cement and lime consortium urges UK govt to accelerate market uptake of CCS
A consortium of cement and lime producers together with an energy company are calling on the UK government to speed up routes to market for commercially mature carbon capture and storage (CCS) projects in order to unlock private investment and allow the country to meet its net zero target.
CCS lobby group pleads for negative emissions reward, special envoy in next EU Commission
A lobby group supporting carbon capture and storage (CCS) in Europe is calling for more support from policymakers, with a reward for negative emissions and a special envoy within the European Commission among a range of recommendations for the next legislative cycle.
British startup claims its green cement can be sold at market value without credit subsidy
An Imperial College London spin-out is seeking seed funding for its decarbonised cement process, which it claims will make producing the material cheaper while still cutting more than 90% of CO2 emissions.
Euro Markets: EUAs drop back out of recent channel in light trading as funds cut net short yet again
European carbon prices dropped back out of their recent channel between €70-€75 on Wednesday as steady selling applied constant pressure as the weekly Commitment of Traders data showed yet another small cut to investment funds’ net short position, while energy markets firmed slightly despite broadly stable fundamentals.
Shipping consultancy launches EU ETS-specific contracts to manage compliance
An international shipping advisory service has created an EU ETS add-on to its standard shipping contracts, enabling shipowners and charterers to delegate compliance obligations to a managing entity.
INTERNATIONAL
EU CBAM will hardly affect major Indian exports, despite warnings -study
The EU’s Carbon Border Adjustment Mechanism (CBAM) import tariff will have a negligible effect on India’s biggest export segments to the bloc, according to a new peer-reviewed study published Monday.
Forever war: Climate change costs to global economy much higher than previously estimated, researchers warn
Global economic output could drop by 12% for every 1 C rise in the world’s average temperature, according to a study by researchers from Harvard University and Northwestern University, who likened the impact to fighting a major war in perpetuity.
BIODIVERSITY (FREE TO READ)
INTERVIEW: UK investor explores generating biodiversity credits in Scotland
Asset manager Gresham House is preparing for the possibility of generating voluntary biodiversity credits from parts of its forestry sites in Scotland, Carbon Pulse has learned.
Environment groups lash Australian govt’s lack of cash for nature in latest budget
Australia’s 2024 budget arrived late Tuesday delivering a A$9.3 billion ($6.1 bln) surplus and is spending big to drive mining and clean energy, but has been attacked for its lack of attention to the protection of nature despite cash of over A$300 million offered.
PepsiCo partners with Canadian group to support biodiversity improvement in farms
PepsiCo has teamed up with a Canadian conservation charity to provide financial incentives for producers committed to improving biodiversity on their lands.
Tetra Pak releases nature targets reporting framework
Swedish-Swiss drink packaging giant Tetra Pak has developed a reporting framework to track its progress towards nature targets with UK-based consultancy Biodiversify.
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CONFERENCES
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. To express an interest in speaking or sponsoring, please email michelle@carbon-forward.com
FREE PASSES: We have allocated a limited number of free passes for Carbon Forward North America to attendees representing medium and large companies that currently buy and retire voluntary carbon credits or are looking to do so in the future. If your organisation is an end user of carbon offsets or wants to learn more about offsetting, and is not from the energy or financial sectors, contact us to apply for a free pass. Maximum one per company.
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
Carbon Policy Development Conclave – New Delhi, May 16: Carbon Markets Association of India (CMAI) presents this exclusive event in collaboration with Diligentia Services a step towards accelerating Net Zero Transition. Set to unfold at Le Meridien in New Delhi, this event pioneers sustainable policy action, driving us closer to climate goals. Be part of this unprecedented initiative, aimed at empowering stakeholders from key Ministries, Embassies, Industry Leaders, Think-Tanks, and Policy-Makers to harness environmental credits for sustainable endeavors. Limited Paid Delegate Seats are available. Secure yours now by registering here. For collaboration opportunities, contact us at secretary@cma-india.in. Learn more at www.cma-india.in.
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
EMEA
EU climate policy stocktake – The European Commission issued two reports on May 15 to take stock of how key pieces of climate legislation are operating. The two reports relate to the European Climate Law; the EU ETS Directive; the Effort Sharing Regulation; and the Land Use, Land Use Change and Forestry (LULUCF) Regulation. These were all revised in the last five years to align with the EU’s updated 2030 target to reduce net GHG emissions by at least 55%. In its conclusions, the Commission underlines the need for legal stability and “full implementation of the legislative framework in place for meeting the 2030 climate and energy targets”. According to the EU executive, this is “a precondition” for Europe to stay on track to cut emissions 90% by 2040 and reach climate neutrality before 2050.
Power cut – RWE, Germany’s largest electricity producer, on Wednesday posted better-than-expected core profit for Q1, boosted by stronger winds and a strong performance at its trading division, Reuters reports. It also confirmed preliminary power generation figures for the period, which saw fossil generation slump compared to the same three months last year, following a heavy year-on-year drop in 2023.
Had better days – Climate change is worsening floods, droughts, and is reducing water quality, posing an increasing threat to our health, according to a European Environment Agency (EEA) report published today. Some data: 5,584 flood-related deaths were recorded between 1980 and 2022 in the 32 EEA member countries, both Northern and Southern regions in Europe are under nearly permanent water stress, rising air and water temperatures facilitate pathogen growth, low flows during dry periods result in higher concentrations of pollutants, etc. There’s more, and that’s why the EEA is calling for fast-tracking implementation and better coordination to start with.
Racing ahead – The UK has a competitive advantage over the rest of the world in a third of green products and services, including electric trains and heat pump components, giving it a leading edge in the race to reach net zero, according to the Institute for Public Policy Research (IPPR). In particular, the country is particularly strong in making products and components used for monitoring, measuring, and analysing industrial processes that will play a big role in economic decarbonisation, such as the power grid and renewable power, it says. It argues that ageing industrial plants should be ”greened” rather than shut down, and that onshoring factories to make key components would shorten supply chains. (the Guardian)
Benefits of bison – A herd of 170 bison introduced to Romania’s Tarcu mountains could help store CO2e equivalent to taking almost 2 mln cars off the road for a year, according to new research by the Yale School of the Environment and funded by the Global Rewilding Alliance, which has not yet been peer-reviewed. The researchers looked at the additional amount of atmospheric CO2 that wildlife can help to capture and sequester in soils through their ecosystem interactions. The European bison herd reintroduced to Romania by Rewilding Europe and WWF Romania across an area of nearly 50 sq km was found to capture an additional 2 Mt of carbon annually — nearly 9.8 times more than without the bison, the researchers found. Restoring bison to ecosystems can help recycle nutrients to fertilise the soil, disperse seeds, and compact the soil to prevent CO2 release, they say. (the Guardian)
Not the EU – Norway and Switzerland, two non-EU countries in the EU single market, have signed a declaration of intent to strengthen cooperation on CCS and CDR as the EU’s European Commission undergoes ongoing deliberations regarding methodologies for the Carbon Removal Certification Framework (CRCF) regulation. Norway’s energy minister, Terje Aasland, noted increased interest in CCS and CDR “especially in Europe” driving the industry forward.
ADNOC ammonia – The Abu Dhabi National Oil Company (ADNOC) announced its delivery of the world’s first certified bulk commercial shipment of low-carbon ammonia enabled by CCS technology to the Japanese company Mitsui on Tuesday. The shipment, produced by Fertiglobe, will be used to generate clean electricity in Japan by capturing CO2 and storing it permanently in the world’s first fully sequestered CO2 injection well in a carbonate saline aquifer. The low-carbon certification process has been conducted by TUV SUD.
That’s a wrap – The regulations governing Egypt’s VCM have all been finalised, according to local media reports (Youm7). This concludes a multi-year process initially marred by inertia but which saw a flurry of activity in 2024. Egypt approved three verification and certification bodies to operate in its domestic VCM and pinned down the legal status of carbon credits in February. In March, Egypt’s Financial Regulatory Authority (FRA) asked the EU to forego levying its CBAM import tariff on producers of Egyptian goods in possession of carbon credits purchased on the Egyptian voluntary market, according to the Arab World Press.
ASIA PACIFIC
Show your commitment – China’s state planner has ordered provinces to develop energy efficiency plans for entities accounting for about 70% of consumption and carbon emissions by 2025-end to meet targets that have been falling short, according to Reuters, which cited a notice from the National Development and Reform Commission (NDRC). The plan will cover by the end of 2025 entities consuming at least 5,000 metric tonnes of standard coal equivalent, down from 10,000 tonnes outlined for 2024, NDRC said. There are about 20,000 of these entities nationally and all of them will be covered by inspections by the end of next year, the notice showed.
Further cooperation – Japan and Vietnam have signed a memorandum of cooperation (MoC) on further collaboration in the forestry sector, Vietnam News reported. Under the partnership, the two countries will work together on several issues, such as sustainable forest management, climate change mitigation and adaptation, and biodiversity conservation. Japan has supported Vietnam in developing and implementing strategies for the field, including the completion of the legal system and the 2017 Forestry Law, according to the report.
Getting organised – The Malaysian state of Sarawak will establish a Climate Change Centre to coordinate, manage, and support all climate change initiatives and carbon trading in the state, its premier said Wednesday, according to the Borneo Post. He added that Sarawak is also crafting a climate change policy to establish a carbon footprint baseline, in the hopes of empowering communities, businesses, and policymakers in tackling emissions and promoting low-carbon technologies to pave the way for a sustainable future for the state.
AMERICAS
VOLUNTARY
CDR cycle open – Frontier, the $1 billion advanced marked commitment to scale CO2 removals, has opened applications for its 2024 fourth pre-purchase cycle to receive $500,000 each. Deadline to apply is May 28, 2024 and applications can be made here. Frontier now has a total of 24 carbon removal projects in its portfolio across 14 countries, with 17 different approaches to carbon removal, from enhanced weathering to direct air capture.
Carbon cohort – Carbon credit marketplace Ceezer has announced the seven startups joining its second Ceezer Carbon Coalition cohort, which aims to drive change in the voluntary carbon market. These are AirSmat, an AI-driven company democratising biochar production across Africa; Heimdal, a developer of limestone-based direct air capture units; Pronoe, a developer of water treatment systems that capture and remove CO2; Recoal, which converts waste biomass into ‘hydrochar’ or negative-emission coal; SeaO2, a developer of direct ocean capture technology; and ZeroEx, a developer of enhanced rock weathering projects.
Paving the way – Verra has released Verified Carbon Standard (VCS) methodology VM0039 Foam Stabilized Base and Emulsion Asphalt Mixtures in Pavement Application, v1.1. This is a revision of VM0039 v1.0, and constitutes a minor revision under the Methodology Development and Review Process, v4.4. The new version includes a discount factor for upstream emission reductions that result from reduced energy consumption from the mining, processing, and transport of aggregates, as per the VCS Methodology Requirements, v4.4. VM0039 provides a framework for the quantification of greenhouse gas emission reductions associated with the production and installation of foam stabilised base and/or asphalt emulsions as substitutes for hot mix asphalt in road construction projects within the US. This minor revision, part of Verra’s New Era initiative, aims to improve the integrity and impact of the VCS programme, the standards body said. Additionally, Verra said it has received a proposal for a major revision to VM0039. The proposed changes would update the methodology’s performance benchmarks and expand its geographic scope. Projects seeking to complete registration in the VCS Program under VM0039, v1.0 must request pipeline listing on the Verra Registry before June 15, 2024, and complete validation by Dec. 15, 2024.
A for effort – A clean cookstove project in Kenya that adopted a new Gold Standard methodology, becoming the first African project to issue credits within it, has received an ‘A’ rating from the BeZero ratings agency, it was announced at the IEA Summit on Clean Cooking in Africa this week. This makes it the first cookstoves project to receive an ‘A’ rating from BeZero. The project has also received a high price offer of $30/tonne – more than three times the current market average – for its initial tranche of credits. The project developer, Nairobi-based EcoSafi, told Carbon Pulse that it sacrificed 80% of its anticipated issuances by switching to this methodology in exchange for greater confidence in the validity of its emissions reductions. The project (GS 11352) will generate an estimated 9,000 units per year from 2021-26, with 5,200 credits issued thus far as proof of concept.
INVESTMENT
SCIENCE & TECH
Summer sizzler – The summer of 2023 was hotter than any other in the Northern Hemisphere for the past two millennia, and the coming summer could be even hotter, largely due to climate change and compounded by El Nino, according to a study in Nature. Scientists have previously determined 2023 to be the hottest year since 1850, when global modern temperature records began. They found the extreme warmth of last summer not only smashed modern records but also exceeded the warmest summer prior to the instrumental record — in the year 246 — by more than half a degree Celsius, with almost all natural climate variations taken into account. While it was almost 4C warmer than the coldest summer.
AND FINALLY…
Identity crisis – Climate change is severely impacting America’s national parks, with the melting of glaciers in Glacier National Park, burning sequoia trees in Sequoia National Park, and prolonged droughts affecting even the tenacious saguaro cacti of Saguaro National Park. The once-iconic features of these parks are under threat, leading to potential future ironies in their names. Glacier National Park has lost 60% of its glaciers since the 1850s, with complete disappearance predicted by the century’s end. This rapid environmental change has prompted a strategic shift in conservation efforts, moving from preservation to active intervention. Efforts include rescuing native species like the bull trout in Glacier National Park from warming waters and competition, and managing invasive species and restoring ecosystems in other parks. However, even with substantial funding and efforts, not all impacts of climate change can be mitigated, leading to a re-evaluation of goals and methods in park management and conservation. (AFP)
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