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 STORIES
ICVCM gets ball rolling with CCPs integrity label approved for 27 mln voluntary carbon credits
The high-integrity Core Carbon Principles (CCPs) label may now be used for an estimated 27 million credits, the Integrity Council for the Voluntary Carbon Market (ICVCM) announced Thursday, although with a warning the science behind some of the quantification needs to improve.
ANALYSIS: Momentum for direct air capture growing in new countries, but US still the standout
Momentum is building in specific markets for direct air capture investment, according to attendees at a carbon dioxide removal (CDR) event held in Zurich this week.
VOLUNTARY
Brazilian authorities target major developer, country’s top carbon credit seller in fraud probe -media
The Brazilian Federal Police (PF)’s investigation into an alleged criminal scheme selling of millions of dollars’ worth of fraudulent carbon credits from illegally authorised lands is centring on a major project developer and the country’s top offset seller, local media reported Thursday.
World’s first carbon insurance product launched to protect trade in ITMOs
The world’s first insurance solution was launched Thursday to protect against the risk of an ITMO credit losing its Article 6 authorization due to the corresponding adjustment (CA) not being made by the host country.
Xpansiv quickly adds CCP label to credits tagged with high integrity stamp
Xpansiv has moved quickly out of the blocks to ensure credits are labelled with the ICVCM’s high integrity Core Carbon Principles (CCP) label after the stakeholder initiative approved eligibility of seven methodologies on Thursday.
Major pharmaceutical company delivers soil carbon credits to US market
A voluntary carbon credit services firm has added a substantial number of soil carbon removal credits to the US blockchain marketplace, issued under a regenerative agriculture programme run by a major pharmaceutical.
Ocean-based CO2 removal techniques “premature and misguided”, likely to lead to greenwashing -scientists
Ocean-based CO2 removal techniques, which are attracting greater interest due to the constraints on land-based methods, may have significant knowledge gaps that could in turn affect the credibility of carbon offset schemes, according to a paper published this week.
EMEA
Pressure builds on EU to open carbon market to CO2 removals
Leading politicians have stepped forward to ask for the inclusion of carbon removals in the EU’s Emissions Trading Scheme (EU ETS), with Poland’s climate minister and the chief ETS lawmaker in the European Parliament joining calls to address a looming liquidity crunch to avoid “market manipulation”.
INTERVIEW: EU CBAM could see trade flows redirected -commodity house
Trade flows of affected products under the EU’s Carbon Border Adjustment Mechanism (CBAM) could be redirected to markets outside the EU to avoid compliance with the scheme, leading to uneven competitive landscapes and a need for international coordination on carbon pricing, said a commodities price reporting agency.
EU’s top court exempts hazardous waste incinerators from ETS
The European Court of Justice on Wednesday ruled that incinerators used for hazardous waste do not need to be included in the EU’s Emissions Trading System if they are part of larger installations covered by the scheme, provided they only marginally incinerate other types of waste.
Top UK ports see boost after EU ETS expansion to shipping
Three of the busiest ports in the UK, a strategic stopover for EU-bound ships to cut down on ETS liability, saw more units and tonnage in Q1 2024 relative to the same period in 2023 as the EU ETS extends to shipping, according to British government figures published Thursday.
More than half of EU climate finance in 2022 came in the form of loan-like instruments -NGO
More than half of all climate finance from the EU and its member states in 2022 came through non-grant instruments, most of which were loans, although the overall amount of climate finance increased, according to research published on Thursday.
INTERVIEW: Europe set to miss first-mover advantage in solar perovskite revolution
Europe could lose first-mover advantage in the game-changing production of perovskite solar panels, that is set to transform the renewable energy market, because of the allure of incentives in the US Inflation Reduction Act, a leading UK-based manufacturer told Carbon Pulse this week.
Euro Markets: Carbon ends little-changed as looming options expiry dampens volatility
European carbon prices ended the day little changed on Thursday despite trading in a nearly €2 range during the morning, as energy markets appeared to adopt a fairly cautious tone and the approaching options expiry appeared to be restricting the market’s volatility.
AMERICAS
WCI Markets: CCAs find support, reversing five-day plunge close to March lows
California Carbon Allowance (CCA) prices in the secondary market reversed course late Thursday after a week of sliding toward March lows on high ICE futures and options volume exacerbating the technical sell-off, market participants said, while Washington Carbon Allowances (WCA) declined heading into the second quarterly permit sale.
British Columbia details stakeholder concerns with CCS offset protocol
The environmental ministry of British Columbia (BC) has released stakeholder feedback on its draft carbon capture and sequestration (CCS) offset protocol that detailed concerns around monitoring periods and leak detection, project eligibility, crediting and stabilisation periods, quantification and verification, and additionality.
Carbon removal company secures lease for DAC manufacturing facility in Arizona
A US-based direct air capture (DAC) firm on Thursday announced it has signed a lease for its first manufacturing site in Arizona to construct modules with a cumulative removal capacity of 2 million tonnes CO2 annually.
US DOE and NOAA join forces to advance marine CO2 removal efforts
The US Department of Energy (DOE) and the National Oceanic and Atmospheric Administration (NOAA) will jointly pursue marine CO2 removal (mCDR) research and development, the agencies announced Thursday.
ASIA PACIFIC
BRIEFING: Japan wrestles with legal issues ahead of ETS launch
A government-appointed working group this week began grappling with legal issues flagged by economy ministry officials as potentially challenging, as Japan begins designing its mandatory emissions trading scheme slated to launch in 2026.
National Australia Bank details A$80 bln 2030 climate finance ambition, sets interim sectoral decarbonisation targets
National Australia Bank (NAB) will provide A$80 billion ($53 bln) in climate-related finance by 2030 and has set interim decarbonisation targets for certain lending sectors. according to its climate disclosures report published Thursday.
Australian fund manager placed to be wound up after a string of bad carbon, agricultural deals
A Sydney-based fund manager has been ordered wound up by the Australian Tax Office (ATO) over unpaid debts after recently going into administration, leaving a litany of bad carbon project development deals in its wake.
INTERNATIONAL
Solar PV, China dominate IEA’s 2024 energy investment report
Investments in clean energy are surging globally to reach almost double the amount going to fossil fuels in 2024, according to the International Energy Agency’s (IEA’s) latest annual investment report, with solar PV surpassing all other energy sources combined.
BIODIVERSITY (FREE TO READ)
Developer plans to sell first Peruvian biodiversity credits by the end of the year, French fund to buy
A France-headquartered nature-based project developer is piloting biodiversity credits in a large area in the Peruvian Amazon rainforest to boost funding towards conservation efforts, as it expects the first transactions to happen by the end of the year.
Mirova, Rainforest Alliance announce regenerative agriculture partnership
Investor Mirova and non-profit Rainforest Alliance have announced a partnership to scale up nature-based solutions focused on regenerative agriculture around the world.
Argentine developer partners with French company to generate biodiversity, water credits in the Andes
An Argentine conservation organisation has partnered with a French-headquartered environmental company to generate biodiversity and water credits within an area of 1.2 million hectares in the Andes.
Companies seek the ‘early mover advantage’ when investing in biodiversity, KPMG says
Competitive advantages arising from being early movers in biodiversity finance are among the main drivers for businesses considering investments in nature, accounting firm KPMG has said.
LNG expansion plans threaten biodiversity-rich regions, study says
The planned expansion of liquefied natural gas (LNG) infrastructure worldwide is slated to put coastal and marine ecosystems under increasing pressure, according to a study released Thursday, calling on governments and international organisations to ensure biodiversity-rich regions are effectively protected.
20 years of clarity needed in “confusing” UK nature markets, rewilding group says
More clarity from the government is needed on UK compliance and voluntary nature markets over the next 15 to 20 years, to provide sufficient incentives to ensure large-scale restoration while minimising confusion, non-profit Rewilding Britain said in a report published on Wednesday.
Biodiversity Pulse: Thursday June 6, 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).
—————————————————
BIOCHAR REPORT
Supercritical’s latest report reveals a 30x surge in biochar supply over the next four years, however 88% of this growth comes from low-quality credits. “Boom or Bust? 2024 Biochar Market Outlook” delves into the pressing challenges buyers face, offering exclusive data and trends from Supercritical’s own marketplace which covers 80% of the market. Discover why high-quality biochar commands premium prices and how savvy buyers secure long-term agreements amidst the scarcity. This essential report equips you with the insights needed to navigate the evolving biochar landscape and make informed decisions in this burgeoning market. Download the report
—————————————————
WEBINAR
Surprises from analyzing over 500+ carbon projects – June 12th, 9AM BST: Join carbon market experts from Morgan Stanley, BCG, and Calyx Global as they discuss insights gained from evaluating carbon credit quality. The speakers will review the surprising project types with higher GHG integrity, due diligence best practices, and how to consider beyond carbon impacts. Learn what key factors play a critical role in assessing GHG integrity – helping you make more informed decisions. Register for the webinar here. You will receive an on-demand recording after the webinar if you register but cannot attend live.
—————————————————
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…
—————————————————
Premium job listings
- *Carbon Sales Manager, BioLite – Remote
- Manager, Market Strategy & Engagement, Native – Remote (US)
- Head of Carbon Project Development (m/f/d) – Volkswagen ClimatePartner GmbH – Munich
- Environmental Markets Correspondent, Carbon Pulse – Latin America
*New listing
See all listings or post a job
—————————————————
BITE-SIZED UPDATES FROM AROUND THE WORLD
INTERNATIONAL
Recommendations on renewables – Action on finance, supply chains, permits, and grids are behind the key policy recommendations from the Global Renewables Alliance (GRA) to ensure the full potential of renewable energy is realised and the tripling renewable energy goal set at COP28 is delivered. The agenda, titled ‘Actions to Deliver 3x Renewables by 2030,’ provides detailed recommendations for policymakers to unlock the key barriers and accelerate renewable energy deployment. In summary, these are: Finance, mobilising $10 trillion in renewables investment, especially in emerging markets; Supply chains, enhancing supply chain resilience and sustainability; Permits, accelerating permitting processes to speed up project development; and Grids, optimising and expanding grid infrastructure for clean energy.
EMEA
CBAM support – Turk Eximbank, an export financing institution supported by the Turkish government, has announced the signing of a ‘Turkish green export project’ loan agreement totalling €1 bln to support Turkish exporters’ investments in green transformation and their compliance with the EU Carbon Border Adjustment Mechanism (CBAM). The International Bank for Reconstruction and Development will provide a €600 mln first loss guarantee to the lenders, while the Turkish Ministry of Finance and Treasury will back the agreement with a counter-guarantee. The 10-year loan to be provided by Deutsche Bank, Standard Chartered Bank, BNP Paribas, and ING Bank, will help Turkish exporters tackle the EU CBAM and will also support renewable energy production, energy efficiency, and provide working capital.
Weak EV spending – Europe secured just over a quarter (26%) of global EV investment between 2021 and 2023, while more than a third (37%) went to the US, Canada, and Mexico, despite the region being a smaller car producer, finds analysis by Transport & Environment (T&E). Factors such as US subsidies and weak EU electrification targets in the 2020s contributed to the lacklustre European spending, with the analysis calling on Europe to end uncertainty over its 2035 zero-emission target for cars and to adopt a strong industrial policy to build its EV supply chain. Last year €42 bln in EV investment was committed to Europe, compared to €9 bln in China – whose carmakers invested earlier in EVs and batteries – and €58 bln in North America. The rate of investment growth in Europe declined last year compared to 2022, likely due to carmakers having no EU CO2 standards to meet for four years after 2025. Europe’s biggest beneficiary countries were the UK, Germany, and Spain, the report finds. Almost two-thirds (65%) of EV investments in North America between 2021-2023 came from foreign producers – largely due to subsidies under the US Inflation Reduction Act, while Europe was reliant on domestic carmakers for 80% of funding committed to electrification.
Tax threats – Development of the best remaining oil field in UK waters has been delayed due to Labour’s threats to impose new levies and strip the industry of key tax breaks, the Telegraph reports. Jersey Oil and Gas told investors that the work on the Buchan field will be postponed for at least a year due to the political uncertainties around the future of the North Sea given the upcoming General Election on July 4. The opposition Labour Party, which is trending well in polls, has pledged to halt the issue of new licences for exploration and drilling, along with increasing taxes on offshore profits from 75% – 78%. Meanwhile, the Scottish National Party has been accused of retreating on climate leadership after Deputy First Minister Kate Forbes said the party did not oppose new oil and gas licences in the North Sea, the Independent reported. She said a “climate compatibility test” would be needed.
ASIA PACIFIC
Ahead of schedule – Sri Lanka has committed to reach its net zero emissions goal in 2040, 10 years ahead of its earlier target, President Ranil Wickremesinghe announced this week. He said that Sri Lanka is the first Asian country to incorporate the global objective of zero carbon emissions into its national policy, adding that the draft for establishing the International University on Climate Change in the South Asian nation will be enacted before June 2025. The government is planning to establish a new framework to achieve its climate goals and has already submitted the initial legislation to Parliament. Sri Lanka had initially set the goal of achieving net zero emissions by 2050, however, the country now aims to achieve that goal by 2040, a decade ahead of schedule, while also meeting its economic targets. It is also working on introducing the Climate Change Act and the Act establishing the Climate Change Centre, the president said.
It’s a gas – The Victorian government has approved the first new natural gas development project in the state in 10 years, the ABC reports. The government approved Beach Energy to supply gas from an offshore field near Port Campbell, though the drill site will be located onshore. The government said all gas from the project would be used for Victorian households and businesses. Energy Minister Lily D’Ambrosio said gas had a role to play in the state’ energy transition, despite last year enacting a ban on gas connections in new homes from 2024. Conventional gas developments in the state are allowed, but onshore fracking and coal seam gas projects are barred.
Fined – Australian pension fund, Active Super, has been found guilty of greenwashing in the Federal Court, after being found to have directly and indirectly invested in companies it specifically stated it would not between Feb. 2021 and June 2023, the Nine Newspapers report. Active Super had exposures to gambling companies, Russian fossil fuel companies Gazprom and Rosneft, and ConocoPhillips, despite saying it had eliminated investments that posed too great a risk to the environment and the community. The fund was taken to court by corporate watchdog the Australian Securities Investment Commission, which has been cracking down on greenwashing that it defines as “misrepresenting the extent to which a financial product or investment strategy is environmentally friendly, sustainable, or ethical”.
Supplying green ammonia – Japanese trading company Sojitz Corporation has signed an MoU with Kyushu Electric Power Company and Singapore-based Sembcorp Green Hydrogen to supply green ammonia produced in India to Japan, the companies announced Thursday. Under the agreement, Sojitz Corporation and Kyushu Electric Power will supply green ammonia, to be produced from their 200,000 tonnes per year capacity plant in India, to consumers in various industries, mainly in the Kyushu region of Japan. Land for green ammonia plant has already been secured, with the feasibility study of the project expected to be completed soon.
Promoting SAF – Hong Kong-based airlines Cathay Pacific and Singapore Airlines have entered into an agreement to promote the use of sustainable aviation fuel (SAF) in the Asia Pacific region. The agreement has two main focuses, to achieve net zero emissions by 2050 and drive the development of sustainability in the aviation industry, they said in a release. The two airlines will also explore the possibility of joint procurement of SAF in selected locations, aiming to stimulate its production and adoption.
AMERICAS
Republican EPA resolutions – Congressional Republicans have formally introduced resolutions to overturn the US EPA’s power plant standards released in April, reported E&E News. Companion resolutions were introduced by Senator Shelley Moore Capito (R-WV) and Representative Troy Balderson (R-OH) and have attracted more than 150 co-sponsors combined, including Senator Joe Manchin (I-WV), who recently announced his departure from the Democratic Party and registered as an independent. The EPA rules have seen a series of legal challenges, but a federal appeals court in May rejected requests for a short-term stay of the controversial CCS regulation.
Virginia rejects clean cars – Gov. Glenn Youngkin (R) said Wednesday he will withdraw Virginia from California’s clean car rules by the end of 2024, citing an opinion from Attorney General Jason Miyares (R). Democratic lawmakers accused Youngkin of overstepping his authority. The California auto emissions standards were part of a package of environmental laws adopted by the Virginia General Assembly in 2021, when Democrats controlled both the Senate and House of Delegates. Seventeen states and the District of Columbia have adopted California’s clean car standards. (The Washington Post)
Moe problems – Saskatchewan’s provincial auditor has criticised the province’s industrial carbon levy programme for its lack of transparency and unclear impact on emissions reductions and economic benefits. Released on Wednesday, the report from Tara Clemett urges the Saskatchewan’s environment ministry to enhance its reporting to ascertain the programme’s effectiveness. Clemett highlights the absence of publicly available data on whether the programme is cutting emissions intensity, saving money for industrial emitters, or by what margins. Since 2019, when the levy on heavy emitters was initiated, no funds have been allocated to any emissions-reduction technologies. The report also notes that many emitters are surpassing their emissions limits, with the government projecting to collect C$121 mln in levies this year, having spent only C$4.4 mln on climate initiatives last year. Additionally, Clemett suggests that the province should enforce quicker payments from polluters who exceed thresholds. The provincial government acknowledged the concerns and promised continued flexibility for industries, while the Saskatchewan’s opposition criticises the accumulation of unspent levy funds as mismanagement. The province, under Premier Scott Moe, has also rejected the federal backstop carbon tax being applied to natural gas, a move declared illegal by Ottawa. (Canadian Press)
VOLUNTARY
Regenerative rating – Ratings agency BeZero Carbon has published the industry’s first-ever assessment of a regenerative agriculture project. The project, called Indigo US project No1 and certified by the Climate Action Reserve (CSR 1459) in North America, has been assigned a BBB rating, indicating that it has a moderate likelihood of achieving a tonne of CO2 removed or avoided. While previous agricultural projects primarily focused on methane emissions reduction, the future is poised for regenerative agriculture initiatives to take centre stage, with numerous projects anticipated to enter the market in the coming years, BeZero noted.
SCIENCE & TECH
Keep it cool – More consistent refrigeration of food moving across supply chains could cut almost 2 bln tonnes of GHG emissions from food loss each year, according to new research published in Environmental Research Letters. Poorly temperature-controlled food supply chains could be causing up to 620 mln tonnes of food losses each year, the study finds, resulting in 1.8 bln tonnes of CO2 emissions, equivalent to over three times the annual emissions of Canada. Further, shortening food supply chains could significantly reduce emissions and prevent food loss. As much as one-third of all food goes to waste along supply chains, which if it were a country, would be the third-largest source of GHG emissions in the world, according to the UN Food and Agriculture Org. Sub-Saharan Africa and south and south-east Asia would stand to see the biggest reductions in food loss and related GHG emissions with better refrigeration and localised supply chains, the study finds. Meat accounts for more than half (2.7 GT) of food loss and waste GHG emissions – despite making up less than 10% of global food loss and waste.
AND FINALLY…
1.5 in five – Global temperatures will likely exceed 1.5C temporarily in the next five years, according to the World Meteorological Organisation (WMO). As per the WMO report released this week, the global mean near-surface temperature for each year between 2024 and 2028 will likely be between 1.1-1.9C and there is an 86% likelihood that at least one of these years will set a new temperature record, beating 2023 – the warmest year currently. The chance (80%) of at least one of the next five years exceeding 1.5C has risen steadily since 2015, when such a chance was close to zero. For the years between 2017-2021, there was a 20% chance of exceeding that limit, which later increased to a 66% chance between 2023-2027, a press release stated. This is a “stark warning” that the world is getting ever closer to the goals set in the Paris Agreement, it added. Under the Paris Agreement, countries agreed to keep long-term global average surface temperature well below 2C above pre-industrial levels and pursue efforts to limit it to 1.5C by the end of this century.
Got a tip? How about some feedback? Email us at news@carbon-pulse.com
