Presenting CP Daily, Carbon Pulse’s free newsletter. It’s a daily summary of our news plus bite-sized updates from around the world. Subscribe here

TOP STORY

Verra suspends account of troubled Rimba Raya voluntary carbon project

Verra has suspended the registry account of the troubled Rimba Raya voluntary carbon project in Indonesia, it announced Monday, plunging the future of the giant REDD activity into doubt.

EMEA

EU CBAM could shrink South Africa’s exports 10% by 2050 -central bank

South Africa’s economy could suffer significantly if the EU’s carbon border adjustment mechanism (CBAM) is extended to all sectors, leading to a 10% drop in exports by 2050, according to the country’s central bank.

Carbon removal credits ‘obvious candidate’ for EU ETS integration, says former top official

The European Union should step up its efforts to promote international carbon trading, with removal credits “an obvious candidate” to join a potential “positive list” of carbon projects that could be allowed in the EU ETS, a former top official has argued.

Oxford researchers outline five steps to keep UK on track for net zero

A team of researchers at the University of Oxford has outlined five policy interventions needed to keep the UK on course for net zero goals, warning against an over-reliance on carbon taxes, a solution often advocated by economists.

Euro Markets: EU and UK carbon prices break above key technical levels amid strong early buying

EU and UK carbon prices soared on Monday, driven by a combination of rising demand for fossil power as onshore wind levels dropped sharply, and some speculative buying, with EUAs closing above a major technical level for the first time since August 2023 and UKAs breaching the same technical level and a key psychological price to set a four-month high.

AMERICAS

RGGI Market: RGAs soar past $22 on higher power demand forecast

RGGI Allowance (RGA) prices reached fresh highs late last week amid market participants’ anticipation of increased power demand this summer.

CO2 removal firm raises $50 mln, commences operations in its first DAC facility

A US-based CO2 removal company on Monday announced the closure of its series B funding following a $50 million raise, also revealing that its first direct air capture (DAC) facility is now operational.

ASIA PACIFIC

NZ Market: NZUs fall to 10-mth low as market says confidence in govt is lost

The price for NZUs sunk by around 15% on Monday as the market continued to react poorly to the government’s consultation on the ETS released last week.

Australia launches interim process for ACCU method proposals

The Australian government on Tuesday put the call out for expressions of interest (EOI) for market participants to propose methodologies to generate Australian Carbon Credit Units (ACCUs), in line with recommendations of the Chubb Review.

China’s Guangzhou approves seagrass bed methodology

One of China’s largest cities has given the green light to a methodology for seagrass bed restoration, as regional governments in the country are seeking to unlock the potential of blue carbon.

Japan passes CCS bill but storage capacity small compared to overseas opportunities, report says

Japan has passed its carbon capture and storage (CCS), but the amounts planned by the nation for domestic storage are dwarfed by its larger emissions profile and lack of proper geological storage space, while a report Monday outlined benefits of a large-scale CCS industry in Australia potentially taking a far greater portion.

Australian jurisdictions improving on carbon markets, but work still needed, report says

Queensland maintains Australia’s best regulatory framework for carbon markets and project developers and the Northern Territory the worst, although all jurisdictions have room for improvement, according to an annual survey released Tuesday.

INTERNATIONAL

INTERVIEW: $1 trillion sustainable bonds market to play “very big” role in reducing global emissions

The market in use-of-proceeds and key performance (KPI)-linked sustainability bonds will play a massive role in global mitigation efforts, according to a senior researcher at a large financial ratings firm.

VOLUNTARY

VCM Report: Sluggish voluntary carbon spot market starts to pinch

News broke that Verra has temporarily suspended the registry account of the troubled Rimba Raya project on Monday morning to cap a dreary previous week for the voluntary carbon spot market that is still undermined by thin liquidity and low prices.

INTERVIEW: One insurer’s aim to leapfrog hurdles in assigning risk to voluntary carbon methodologies

A statistical approach that relies on many variables and deep data is emerging within the world of carbon insurance, such as the attempt by one insurance startup to assign risk to project methodologies, though the nuances of individual cases will still require judgment calls.

Voluntary carbon market at “inflection point”, says Integrity Council chief

The chair of the Integrity Council for the Voluntary Carbon Market (ICVCM), which last year unveiled the Core Carbon Principles (CCPs) that are intended to enhance the integrity of voluntary carbon credits, has said that the adoption of the CCPs marks an “inflection point” in the future of the sector.

Nigerian govt adopts initiative to distribute 80 mln clean cookstoves financed by voluntary carbon credits

The federal government of Nigeria has collaborated with an African carbon offset project developer to distribute 80 million clean cookstoves throughout the West African nation that have been fully financed by voluntary carbon credits.

Voluntary carbon removal standard expands science team with two new hires

A London and New York-based carbon removal standard and registry has hired two carbon removal (CDR) experts to expand their science leadership team, the company announced on Monday.

Aramco, US-based climate tech firm enter into MoU to advance DAC

Oil giant Saudi Aramco and a US-based direct air capture (DAC) developer unveiled a Memorandum of Understanding (MoU) on Friday intended to advance the nascent carbon removal (CDR) technology.

BIODIVERSITY (FREE TO READ)

EU consultation on biodiversity credits struggles to draw attention

An EU-commissioned survey on biodiversity credits has received less than a third of the expected responses, Carbon Pulse has learned, with the consulting group responsible for the study calling for increased participation to finalise it and present the findings at this year’s COP16 UN biodiversity summit.

Global biodiversity fund ringfences over $70 mln for new round of grants

The Global Biodiversity Framework Fund (GBFF) has approved a new round of grants, planning to deliver over $70 million for 18 new projects.

Biodiversity credits should learn from voluntary carbon, require regulatory oversight -investors

The evolving market for biodiversity credits should seek to avoid some of the pitfalls of the voluntary carbon market (VCM), while capitalising on the interdependencies between climate and nature, said speakers during an event in London on Monday.

Migratory fish populations have declined by over 80% since 1970, study says

Migratory fish populations have fallen by 81% between 1970 and 2020, mainly due to the degradation, change, and loss of habitat, a study has found, calling for strengthening of monitoring efforts and enhancing river protection and restoration efforts.

COMMENT

‘Hamlet’ and the Tragedy of Climate Change

Shakespeare’s “Hamlet,” written centuries before the first IPCC report, serves as a timely caution, writes Andurand Capital Management’s Mark Lewis, likening Hamlet’s tragic procrastination to the world’s current delay in addressing the record-breaking greenhouse gas emissions that are propelling us towards climate catastrophe.

—————————————————

Job listings this week

• *Asia-Pacific Environmental Markets Correspondent, Carbon Pulse – Asia or Australia/New Zealand
• *Environmental Markets Correspondent, Carbon Pulse – Latin America
• Senior Director, Carbon Finance Origination & Deal Lead (Americas), Conservation International – Peru/Brazil
• Account Executive, Renoster – Remote
• Carbon Removal Asset Management Lead, Microsoft – Redmond, WA
• Carbon Project Lead, Afforestation Project, East Carbon Consultancy – Fujairah, UAE
• Invitation to join Gold Standard’s Methodology Expert Working Groups, Gold Standard – Multiple Locations
• Senior Officer, Oversight, Compliance and Innovation, Gold Standard – Remote (UK/Germany/India)
• Officer, Methodology Development & Innovation, Gold Standard – Remote (UK/Germany/India/Elsewhere)
• Officer, Standards Development and Innovation (Energy), Gold Standard – India
• Programme Management Officer, Constituted Bodies and Data Services Subdivision, UNFCCC – Bonn, Germany
• Team Lead, Markets and Non-Markets Support and Stakeholders Interaction Subdivision, UNFCCC – Bonn, Germany
• Team Lead, Implementation Coordination Subdivision, UNFCCC – Bonn, Germany
• Team Assistant, Constituted Bodies and Data Services Subdivision, UNFCCC – Bonn, Germany
• Programme Officer, Markets and Non-Markets Support and Stakeholders Interaction Subdivision, UNFCCC – Bonn, Germany
• Programme Officer, Constituted Bodies and Data Services Subdivision, UNFCCC – Bonn, Germany
• Programme Officer, Constituted Bodies and Data Services Subdivision, UNFCCC – Bonn, Germany
• Programme Officer, Implementation Coordination Subdivision, UNFCCC – Bonn, Germany
• Programme Officers, Regulatory Framework Implementation Subdivision, UNFCCC – Bonn, Germany
• Programme Assistant, Regulatory Framework Implementation Subdivision, UNFCCC – Bonn, Germany
• Programme Assistant, Regulatory Framework Implementation Subdivision, UNFCCC – Bonn, Germany
• Programme Assistant, Regulatory Framework Implementation Subdivision, UNFCCC – Bonn, Germany
• Associate Programme Officer, Assessment & Accreditation Unit, UNFCCC – Bonn, Germany

*Premium listings

See all listings or post a job

—————————————————

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 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!

—————————————————

BITE-SIZED UPDATES FROM AROUND THE WORLD

EMEA

Dumping ground – Britain’s largest steelmakers fear that the country risks being a dumping ground for low-cost, high-emissions steel unless the government steps up its introduction of a new carbon border tax, the FT reports. The UK government plans to introduce the levy in 2027 a year later than the EU, with the industry subsequently concerned that in the intervening period, other countries will divert their high-emission steel to the UK. Industry body UK Steel has written to the Treasury urging ministers to reconsider, with the government consultation on a CBAM launch ending in mid-June. British Steel and Tata Steel are among those concerned about the UK’s delay to implementing its own carbon border tax. The UK Treasury announced its plan for the tax last December, whereby imports of iron, steel, ceramics, cement and other goods will be subject to the levy, protecting companies from being undercut by imports from countries with weaker climate regulations.

Rallying cry – Nine in every 10 UK businesses are calling for greater government support to help meet decarbonisation targets, with high costs cited as a key barrier, according to new research from BSI. Companies recognise their role in helping the country achieve net zero, but are in the majority calling for stronger state support to help with the cost of the transition, such as through financial incentives. Almost 40% of those surveyed said their ability to decarbonise was hampered by uncertainty over the government’s green commitments, while 35% said they were impacted by uncertainty over what the next government will do. The vast majority advocate for parties to show strong commitment to the UK meeting net zero goals via targeted policy measures. The research finds that only 35% of businesses have set an overall target to achieve net zero by 2050, and only 25% have met some of their interim targets.

ASIA PACIFIC

Hiding failure – A secret report commissioned by the Western Australian government has found the state is on track for record-high GHG emissions and will not reach net zero by 2050 if BAU continues, the ABC reports. The Oct. 2023 report projected that the state would emit 91.5 MtCO2e this year, 20% above 2005 levels, thanks largely to its mining, oil, and gas sectors. The report showed in order to meet state and national net zero plans, emissions would need to be 11% below 2005 levels in 2030 and 42% below in 2035. Based on WA’s current trajectory, the report said emissions would be just 2% below 2005 levels in 2030 and 20% below in 2035.

Fierce competition – Japan and ASEAN intend to create their first joint strategy on automobile production and sales within the Southeast Asian bloc, according to Nikkei, as Chinese electric vehicles become more popular there. The two sides are aiming to craft an interim joint strategy through around 2035 when their economic ministers meet as early as September this year, the report said. The joint strategy is likely to include collaboration on training personnel, decarbonising production processes, sourcing mineral resources, and making investments in new technologies like biofuels.

Vietnam expansion – Tokyo-based project developer Green Carbon has signed a memorandum of understanding (MoU) with two local partners, Loc Troi and Daithanh, to promote a voluntary project covering around 200,000 hectares of rice paddies in Vietnam’s An Giang province. The alliance said they aim to establish a credit-generating project under the bilateral Joint Crediting Mechanism (JCM) that can help realise the two countries’ climate targets. Green Carbon recently also partnered with a regional government-backed agricultural organisation to promote rice projects in Nghe An province.

Smart power – Singapore-based clean energy solutions provider Terrenus Energy has secured $223 mln funding from DBS, the bank announced Monday. Through the funding, Terrenus will accelerate the deployment of one of the largest renewable energy projects in Singapore to date. The green loan will finance the installation of photovoltaic panels on some 1,200 public housing blocks and 57 government sites, and commercial and industrial facilities. Further, smart power meters will also be installed in select public housing estates and the surplus green energy generated will be injected into the national grid. Through the latest project, Terrenus will be able to offset around 150,000 tonnes of CO2 emissions compared to traditional energy generation methods every year.

At last – The federal government of Pakistan has established the Pakistan Climate Change Authority under the country’s Climate Change Act, 2017, the Ministry of Climate Change and Environmental Coordination announced last week. In November last year, the then Prime Minister Anwaar-ul-Haq gave approval for the formation of an expert committee under the ministry of climate change. The expert committee will be responsible to draft a policy framework that would enable the formation of a domestic carbon market and the trading of carbon credits in the South Asian nation.

AMERICAS

CFTC incoming – The US Commodities and Futures Trading Commission (CFTC) expects to finalise its previously announced guidance for carbon credits within the next six months, reported Bloomberg. CFTC Commissioner Christy Goldsmith Romero said she anticipates the final rulebook to be issued by the end of the year and possibly as soon as September, the outlet reported. The CFTC is in process of reviewing public comments, and Romero said the CFTC’s final guidance is expected to adapt the concepts and standards issued by ICVCM. David Gillers, chief of staff and chief operating officer at the CFTC, had previously indicated an earlier targeted deadline for the release of the guidance of June or July.

LCFS workshop – The California Air Resources Board (ARB) announced Monday that it will hold a public workshop on Nov. 8, 2024, over proposed amendments to the Low Carbon Fuel Standard (LCFS) programme. The public agenda will be posted ten days before the workshop, and the 45-day public comment period that ended Feb. 20 was not extended. The workshop was originally scheduled for Mar. 21, but was postponed on Feb. 14 following extensive stakeholder feedback regarding the proposed changes. The agency is currently considering refinements to the proposed regulatory package.

Power plant battle – A pair of North Dakota Republican congresspersons have introduced dual resolutions to revoke the recently released US EPA emissions standards for existing coal- and new natural gas-fired power plants. Senator John Hoeven (R) announced Friday the introduction of a Congressional Review Act resolution that would scrap the rules, while Representative Kelly Armstrong (R) has put forth a companion resolution in the House. Over two dozen Republican attorneys general and an assortment of industry organisations have filed challenges to the new regulations. On Friday, a federal appeals court also rejected requests for a short-term stay to halt implementation of the rules pending litigation, while a group of Democratic attorneys general and others filed a motion to intervene to support the EPA in defending the rule that envisions a substantial role of carbon capture and storage (CCS) in reducing power plant emissions. On Monday, E&E reported that the Edison Electric Institute (EEI) – an association that represents all US investor-owned electric companies – plans to sue the Biden administration over the CCS rule, representing a significant shift in the EEI’s approach, as it had previously defended the Clean Power Plan during the Obama era.

RFS lawsuit – A group of renewable fuel groups submitted a petition Monday to the US Supreme Court asking it to overturn an opinion from the US Court of Appeals for the Fifth Circuit that vacated the EPA’s denial of several small refinery exemptions (SREs) under the Renewable Fuel Standard (RFS). In their petition, Growth Energy and the Renewable Fuels Association argued that challenges to those denials should be adjudicated solely in the US Court of Appeals for the DC Circuit, not in regional circuits like the Fifth, which only covers Louisiana, Mississippi, and Texas. In contrast to all other federal appeals courts that evaluated the issue, the Fifth Circuit concluded that it was the proper venue to hear and rule on these challenges. The groups argued that the Supreme Court should clarify that the DC court is the proper venue for these questions to ensure that SRE review is governed by a single court whose decisions apply nationwide.

LNG litigation – Federal judges on the US Court of Appeals for the District of Columbia Circuit weighed Friday whether to mandate the Federal Energy Regulatory Commission (FERC) to perform a second review on two liquefied natural gas export projects in Texas, reported E&E News. The DC circuit court had previously ordered FERC to redo part of its analysis of the projects and explain why it had not chosen to use the social cost of carbon in doing so, and last week questioned whether the first FERC analysis fulfilled that order. The case — brought by a coalition led by the City of Port Isabel — is one of several legal challenges pushing FERC to calculate an individual project’s impact on planet-warming emissions and then use that information to assess whether that project should be approved, but the commission has resisted such pressure.

Carbon clarity – Derek Evans, the new executive chair of the Pathways Alliance – a consortium of Canada’s largest oil sands producers – said Conservative Leader Pierre Poilievre needs to clarify where he stands on the country’s carbon tax, reported CBC. Poilievre has vowed that he would scrap the consumer-level carbon tax if his party wins the next federal election, but has been evasive as to his position on the federally mandated carbon price for industrial-scale emitters. The federal carbon tax has been a hot button political topic in Canada this year.

Canadian DAC deployment – Ottawa-based DAC developer TerraFixing announced last week a C$10 mln ($7.3 mln) commercial agreement with Quebec power company Tugliq Energie to instal two carbon capture units in Canada. The commercial agreement is in tandem with the successful seed round funding of C$1.6 mln closed at the beginning of May led by Tugliq. The capital infusion and commercial agreement will accelerate the development and deployment of 1,000 and 4,000 tonne per year DAC models, and support the expansion of TerraFixing’s team and the establishment of a new R&D lab space at the University of Ottawa. The smaller 1,000-tonne model is set to deploy in Fermont, Quebec, after receiving local support and pre-sale of CDR credits from Klarna, the WRLD Foundation, and more, according to a press release.

VOLUNTARY

Tocantins carbon credits – The Brazilian state of Tocantins announced Friday the creation of a carbon credit project based on avoided deforestation areas from 2016-30, mostly in the Cerrado region. Globo Rural reported that, between 2016-20, it is estimated that this amounted to some 40,000 tonnes. The area encompasses both private and public lands, and private property owners who wish to pursue their own projects can also do so, but must inform the state. According to Tocantins’ Secretary of Environment and Water Resources Marcello Lelis, the revenues will be split between the state, rural property owners, Indigenous groups, and conservation efforts. The credits will be sold to Switzerland-based trading house Mercuria, who secured a finalised agreement with Tocantins in June 2023 for the supply of 250 mln jurisdictional carbon credits over a decade-long period.

AND FINALLY…

Got a tip?  How about some feedback?  Email us at news@carbon-pulse.com