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TOP STORY
Former C-Quest Capital CEO accused of wrongdoing, reported to US authorities over alleged carbon credit over-issuance
Project developer C-Quest Capital (CQC) on Wednesday revealed that it has uncovered significant wrongdoing by its founder and former CEO Ken Newcombe that allegedly resulted in the over-issuance of millions of voluntary carbon credits, leading the firm to report the matter to US authorities and fire a number of senior executives and staff.
INTERNATIONAL
Suriname to make oil companies buy sovereign carbon credits at $25/tonne
The densely forested country of Suriname plans to exploit its newly discovered oil reserves and remain a net remover of carbon at the same time, by requiring oil companies to buy Internationally Transferred Mitigation Outcomes (ITMOs) to cover their Scope 1 and 2 emissions.
Swiss agency aims for three project types under Article 6 in Chile
The Swiss industry agency arranging many Article 6 deals on the country’s behalf is aiming to support three kinds of mitigation projects in Chile, Carbon Pulse heard on the sidelines of a summit in Colombia on Tuesday.
BRIEFING: Article 6 deals could help to close the climate finance gap, expert says
The voluntary market is inherently limited in its ability to deliver large-scale carbon reductions, so policies should focus on the Paris Agreement’s Article 6, as well as compliance markets, to drive market growth, a prominent academic said at an event in London.
EMEA
FEATURE: The €1 trillion question – How to bridge the EU’s climate investment gap
When the new European Commission takes office later this year, it will have a tricky question to answer – how to find €1.5 trillion per year to finance the EU’s net-zero transition. As EU governments tighten their belts, revenues from carbon trading could provide a much-needed source of income, experts say.
Ukrainian group calls for force majeure relief from CBAM fees
Ukrainian industries risk incurring financial losses from the EU’s Carbon Border Adjustment Mechanism (CBAM), unless the two sides can quickly agree to recognise a ‘force majeure’ and exempt the war-torn country from incoming carbon fees, according to a Ukrainian think-tank.
World Bank announces $700 mln loan for Egypt to develop domestic carbon market, green transition
The World Bank will award $700 million in loans for Egypt to support a greener growth trajectory, including the establishment of a voluntary carbon market (VCM) regulatory framework, according to a release Monday.
Euro Markets: EUAs tumble amid further aggressive selling as gas prices plunge after options expiry
After making early gains in line with natural gas, European carbon prices broke lower and fell to a new two-month low amid heavy selling, as weekly position data showed investment funds had reduced length for a fourth consecutive week and UK Allowance prices dropped away after the auction cleared at a discount for the first time in two months.
EEX announces termination of Nasdaq Nordic power trading deal
Europe’s leading energy exchange EEX will not be taking over Nasdaq’s Nordic power trading and clearing business, the company announced on Wednesday.
EU energy firms continued to dominate list of top ETS emitters last year, report shows
European energy firms dominated the list of top emitters under the EU ETS last year, with Polish utility PGE leading the charge, according to a report released Wednesday.
AMERICAS
Shell reaches final decision to invest in Alberta CCS projects
The Canadian subsidiary of Anglo-Dutch oil major Shell announced Wednesday it has reached a final investment decision (FID) to proceed on two carbon capture and storage (CCS) projects in Alberta, with one having an approximate annual capture capacity of 650,000 tonnes of CO2 annually.
Canada announces first two-way carbon contract for difference
Canada’s C$15 billion ($10.9 bln) public investment vehicle has signed a carbon contract for difference (CCfD) with a municipal energy company at an initial strike price per tonne of CO2 for a 10-year term.
Alberta TIER credit retirements could reach 10 mln this year, says research firm
Credit retirements under the Alberta Technology Innovation and Emissions Reduction (TIER) programme may reach 10 million tonnes this year, matching offsets and Alberta Emissions Performance Credits (EPCs) generation, a research firm said Wednesday.
New York awards $21.5 mln for nature-based climate solutions
New York Governor Kathy Hochul (D) announced Wednesday that $8.5 million had been awarded to winners of the first round of the Natural Carbon Solutions Innovation Challenge, and that $13 mln was available for projects in the second round.
ARB issues lowest California offsets YTD, 2024 pace lags 2023
California regulator the ARB issued its lowest number of offsets since the winter holidays in its most recent two-week issuance period, with the year-to-date pace now lagging behind 2023 numbers, agency data released Wednesday showed.
Republicans file brief supporting appeals against SEC climate disclosure rules
A group of Republicans in the US House and Senate filed an amicus brief in a federal appeals court siding with litigation against the Securities and Exchange Commission’s (SEC) contested climate regulation.
ASIA PACIFIC
China to launch national issuance and trading system for domestic green certificates
A national system for the issuance and trading of China’s Green Electricity Certificates (GECs) will be officially launched at the end of this week to underpin the development of the renewable sector, though the linkage between the GEC scheme and the national carbon market remains unclear.
New Zealand govt appoints methane science and targets review panel
The New Zealand government has appointed an independent review panel on the country’s methane science and targets, alongside its terms of reference, it announced Thursday.
Pertamina, NYK to collaborate on liquefied CO2 transport, establish joint ship management company
Indonesia’s Pertamina has signed an agreement with Japan’s NYK Line to establish a ship management company as well as collaborate on liquified carbon dioxide (LCO2) and LNG transportation.
BHP on track to cut emission by 30% by 2030, says pathway to net zero not linear
Anglo-Australian miner BHP is on track to achieve “at least” a 30% reduction in Scope 1 and 2 emissions by 2030, but says technology challenges mean its progress to reaching net zero emissions by 2050 will not be linear.
Japanese developer, Filippino biochar producer partner to generate credits across Southeast Asia
A Tokyo-based project developer has teamed up with a biochar producer in the Philippines to generate carbon credits across the Southeast Asian region, it announced Wednesday.
Australian pension fund hits back on demands to divest from coal
Simply divesting from fossil fuel companies is a poor tactic in the transition to net zero, an Australian pension fund said Wednesday after being criticised for walking back its exclusion policy on coal.
VOLUNTARY
Flood of J-REDD carbon credits set to hit market with buyers ready to pay high price -report
A huge number of national and state-level jurisdictional REDD (J-REDD) carbon credits are set to burst onto the market, with buyers willing to pay a hefty premium above the private avoided deforestation sector, finds a new report.
INTERVIEW: New forest carbon standard seeks to disconnect revenue from credit issuance, ensure community buy-in
A new forest carbon standard is looking to take an area-based model to how it generates revenue, rather than being paid for how many credits it issues to a project, and will require transparent benefit sharing among all project stakeholders to ensure community approval.
Climate litigation on the rise as filings increasingly target corporates
Climate litigation is on the rise, according to analysis published Thursday, with filed cases focused increasingly on corporate greenwashing rather than governments, and a growing share involving the use of voluntary carbon credits.
Developers struggling to meet carbon project requirements in developing countries, experts say
Companies are struggling to meet regulatory requirements for carbon projects in developing countries, according to experts speaking on an online panel at London Climate Week.
Scientific body backs forest conservation and restoration in report funded by Verra
Forest conservation and restoration “have a solid scientific basis for mitigation in which we should have full confidence”, according to a group of leading scientists in a new report funded by Verra.
European DAC startup founded by ex-Tesla engineer raises €6 mln from investors
A European direct air capture startup founded by a former Tesla engineer has raised €6 million in a seed funding round.
BIODIVERSITY (FREE TO READ)
Carbon standard plans to issue first biodiversity credits by year end
A voluntary carbon standard plans to issue its first batch of biodiversity credits generated through two separate projects in Latin America by the end of the year, a company executive told Carbon Pulse.
Indonesia joins forces with US philanthropy in massive push to protect rainforest, restore biodiversity
The government of Indonesia has formed a partnership with a US-based philanthropy to restore nature and biodiversity by safeguarding 15 million hectares of rainforest in the Southeast Asian country.
Saving the world’s most threatened species through expanded protected areas less costly than expected, study says
Expanding protected areas (PAs) to include 1.2% of the world’s terrestrial surface would help save the most threatened species from extinction at a lower cost than expected, a paper has said.
Canada launches C$335 mln fund to support Indigenous-led marine conservation
Canada’s federal government announced on Tuesday a C$335 million ($245 mln) allocation in blended finance to support First Nations in the preservation and stewardship of the Great Bear Rainforest’s marine and coastal environment.
Over 200 investors back initiative to drive corporate engagement on biodiversity loss
A group of 204 investors have joined forces to back an initiative on nature stewardship, seeking to pressure 60 companies to improve biodiversity-related risk management and help shape better environmental policies.
COMMENT
As America confronts unique environmental challenges, carbon credits cannot be left on the sidelines
Communities across America depend on environmental remediation projects, such as Superfund cleanups and plugging oil wells, which require sustained financial commitment and innovative tools like carbon credits. While offsets effectively support these efforts, critics wrongly dismiss them as mere public relations tools, threatening the progress of essential environmental initiatives.
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CONFERENCES
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BITE-SIZED UPDATES FROM AROUND THE WORLD
INTERNATIONAL
Green Basket Bond – British International Investment, the UK’s development finance institution has committed $75 mln to the second Green Basket Bond arranged by emerging markets access platform and financial lender Symbiotics Investments. The green lending programme will increase financing to small-scale green projects across Africa, South and Southeast Asia through micro, small, and medium enterprise (MSME) lenders, with 50% of the financing earmarked for India. The first green basket bond supported 11 MSME lenders in India, Vietnam, Cambodia, Tunisia, Botswana, Kenya, Bangladesh, and Nepal. As with the first bond, funding will be provided to green projects that span renewable energy, energy efficiency, clean transportation, green buildings, agriculture, and forestry, BII said in a statement.
EMEA
Workers’ manifesto – Over 60 climate organisations including Greenpeace UK, Friends of the Earth England, Wales and Northern Ireland, Oxfam UK and Extinction Rebellion have signed an open letter calling for a ‘clear and funded’ transition plan for North Sea communities reliant on the oil and gas industry. They also call for a phase out of oil and gas in the North Sea as a ‘crucial step’ to meet the UK’s ‘legally binding climate commitments, address the UK’s historic role as a disproportionate producer of emissions, and prevent further loss and damage globally.
Election manifestos – French citizens will go to the polls for two rounds of voting on June 30 and July 7 to elect deputies to the national assembly, following the call of a snap election by French president Emmanuel Macron in the wake of the European parliamentary elections where Macron’s centrists secured just 15% of the vote. Climate change and net zero are not expected to be a key focus in the French election, given the perceived growing opposition to green policies in Europe and significant losses for the French Green party in the European Parliament elections. Instead, the main issues in the French election are expected to be retirement, energy bills and immigration. Ensemble has reiterated its support for nuclear in its manifesto, pledging to build eight new reactors, while NFP (Nouveau Front Populaire) focuses more explicitly on renewables and pledges to scrap a tax on energy bills. RN (Rassemblement National) plans to lower VAT on all energy products. Beyond energy, there is limited focus on climate related issues within the manifestos. NFP and Ensemble pledge to develop industry to end France and Europe’s dependence on global markets for strategic sectors such as electric cars and solar panels, and all three party groupings pledge increased support for the agricultural sector.
Finance for cities – The 112 cities aiming to reach net zero emissions by 2030 will need a combined €650 bln of investment to deliver, Reuters reported, citing the EU’s ‘100 Climate Neutral and Smart Cities’ Mission’ initiative that launched on Wednesday. The EU chose 100 cities inside the bloc and 12 from associate countries to join the programme, out of the 377 that applied. They are now developing climate plans with support from the EU and the non-profit advisory firm Bankers without Boundaries. The plans will be turned into an investment blueprint, which will be assessed by the European Commission and independent experts before the cities receive a label. Some 33 cities have already had their plans approved, and more are expected in October.
Green steel boost – The European Commission has approved, under EU state aid rules, a €265 mln direct grant made available in part through the Recovery and Resilience Facility (‘RRF’) to support H2GS AB in setting up a large-scale green steel plant in Boden, Sweden. The steel plant includes the construction of one of the world’s largest electrolysers with a capacity of 690 MW, a direct reduction plant operating with renewable hydrogen; two electric arc furnaces; and cold rolling and finishing facilities. The new installations are envisioned to start operating in 2026 and to produce 2.4 mln tonnes of green steel per year. The use of renewable energy for the whole manufacturing process will neutralise up to 87% of GHG emissions compared to traditional steel manufacturing processes. The assessment found that the aid would have an incentive effect of catalysing private finance, with €6 bln total investment in the project.
Polish clean air finance gap – Poland’s Clean Air Programme, which focuses on replacing fossil fuel boilers, may have a financing gap of around PLN 75 billion (€17.4 bln), according to estimates by the National Fund for Environmental Protection and Water Management (NFOSiGW), reports the Polish press agency (PAP). Previous estimates put the cost of the entire programme at PLN 103 bln (€ 23.9 bln) by 2029, which includes the replacement of 3 million home boilers that do not meet any emission standards. But the figure didn’t include related home renovation costs, explained Krzysztof Bolesta, deputy minister for climate and environment, adding that work is underway to revise those estimates. Potential new sources of revenue include EU money coming from the Modernisation Fund and the Social Climate Fund attached to the EU ETS.
Comments please – Switzerland on Wednesday initiated a consultation for amending the country’s CO2 ordinance, with public commentary open until Oct. 17, 2024. This amendment follows the revised CO2 law enacted in Mar. 2024, aiming to halve GHG emissions by 2030 relative to 1990 levels, with two-thirds of reductions to occur domestically. The ordinance sets sector-specific targets: a 50% reduction for buildings, 25% for transport, 35% for industry, and 25% for agriculture, waste (excluding household waste incineration), and synthetic gases. The revised CO2 law enhances support for climate adaptation, offering financial aid for cantonal, municipal, and business initiatives against floods, droughts, and extreme heat. In industry, new incentives include support for significant emission reductions and annual reductions in free emissions allowances under the Swiss ETS. Other measures support biogas, solar hot water in businesses, and exempt certain firms from CO2 tax if they reduce emissions. In transport, enhancements include fostering international rail connections and transitioning from diesel to electric buses. It mandates partial compensation for CO2 emissions from fuel importers, with a minimum 12% domestic offset from 2025 to 2030. New regulations also apply to heavy commercial vehicles regarding CO2 targets. Aviation measures continue with the CH ETS, requiring gradual increases in renewable fuel blending into kerosene, aligned with EU practices. Lastly, the building sector sees the continuation of the domestic buildings programme and CO2 tax, with indirect support for geothermal energy use.
Another lawsuit – German climate activists have launched a legal challenge against the government’s climate policy, claiming it is unconstitutional. This follows a 2021 court ruling that deemed a previous version of the climate law partly unconstitutional for placing undue burdens on future generations. The activists argue that recent legislative changes, influenced by the Free Democrats party, have weakened enforcement mechanisms and scrapped specific sectoral emission targets. They claim that the government’s inaction, particularly in the transport sector, risks imposing severe limitations on future generations and socially disadvantaged groups. The case is supported by environmental organisations like Greenpeace and Germanwatch, citing the government’s failure to embrace effective, low-cost pollution reduction measures and its inadequate planning beyond 2030. The government maintains that the recent amendments are constitutional and enhance policy evaluation and adjustment. The activists seek to enforce stronger climate action to prevent future restrictions on personal freedoms due to unmet climate targets. (Guardian)
ASIA PACIFIC
Heavy lifting – The Australian Energy Market Operator (AEMO) estimates that 80% of homes will be powered by rooftop solar by 2050, according to its biannual energy transition road map, the Integrated System Plan, and that projected transmission projects will save A$3.3 bln ($2.2 bln) in emissions, the ABC reported. Under the plan, all of the country’s coal-fired power stations, equivalent to 21 GWs, will retire by 2038 to meet the government’s emissions reduction targets. AEMO estimates a six-fold increase in large-scale wind and solar is required, equivalent to around 6 GW each year to 2050. However, only about half of that capacity is currently being built, as a result of delays, grid constraints, and opposition from some communities. Around 10,000 km of high-voltage transmission lines will needed to built between now and 2050.
Never stop – Xie Zhenhua, who in January retired from the role as China’s climate change envoy for the second time, has leapt back into action. According to Dialogue Earth, Xie has now launched a new fund dedicated to the green transition and sustainable development, which will be run by the China Environmental Protection Foundation under the supervision of the environment ministry. Seed money for the fund will come from the cash award Xie received last year from the Nobel Sustainability Trust Foundation, and the fund’s international partners attending its first strategy meeting in Beijing include the Rockefeller Brothers Fund and the Children’s Investment Fund Foundation.
Downward trend – Taiwan saw its 2022 net GHG emissions drop 4.07% year-on-year to 264.13 MtCO2e, which also represents a 1.77% decrease compared to the base year 2005, according to a national inventory report released this week by the environment ministry. The island’s carbon emission intensity, or CO2 emissions per unit of GDP, also declined 5.62％ annually in 2022, government data showed. Taiwan has seen a general decreasing trend in GHG output since 2007, though emissions in 2021 increased due to rising power demand amid post-Covid economic recovery, the ministry said.
Fresh investment – LanzaJet, a sustainable aviation fuel (SAF) producer, will receive an investment from MUFG, one of the world’s leading financial groups, it said in a statement released this week. MUFG’s investment is part of LanzaJet’s current $100 mln growth equity funding round. The sustainable fuel developer’s portfolio of investors also includes All Nippon Airways (ANA), British Airways, and Southwest Airlines.
Nuclear action plan – India’s nuclear power generation capacity is set to increase by around 70% in the next 5 years with the addition of seven new reactors, Union Minister Jitendra Singh has said. According to the minister, India should prioritise development of indigenous technology and promotion of energy security. He said this while convening a meeting to review the 100-days action plan of the Department of Atomic Energy in New Delhi on Tuesday.
Let’s link – Market infrastructure provider Xpansiv has announced a partnership with Trovio to integrate Trovio’s CorTenX Environmental Asset Registry Services with Xpansiv Connect, an integration hub for environmental commodity markets. Trovio, known for its collaboration with governments and non-profits, offers technology solutions that improve transparency, connectivity, and traceability in environmental markets. Recently, Trovio was chosen by Australia’s Clean Energy Regulator to develop a new register consolidating existing ones, enhancing the Australian Carbon Credit Unit (ACCU) market. This partnership aims to expand the availability of environmental commodities and improve market liquidity and price discovery by connecting Trovio’s technology with Xpansiv Connect’s extensive network of market participants.
AMERICAS
New energy workforce – The US Department of Energy’s Office of Fossil Energy and Carbon Management announced $1.4 mln in funding Wednesday for 14 local organisations and universities representing communities across the country that will each create a roadmap toward repurposing their existing energy assets. The Capacity Building for Repurposing Energy Assets initiative assists communities where a significant portion of their local economy has historically been supported by energy assets, such as coal, oil, and/or natural gas facilities and accompanying equipment and infrastructure. The 14 projects were selected to help communities build technical capacity and develop a workforce necessary to help revitalise energy systems, address environmental impacts, and tackle challenges associated with energy assets that have been retired, or are slated for retirement.
GOP targets Biden’s environmental rules – The Republican-controlled House Energy and Commerce Committee will vote this week on four resolutions against top Biden administration environmental rules, reported E&E Daily. On the agenda are several Congressional Review Act resolutions, including: H.J. Res. 163, from Rep. Troy Balderson (R-OH), which goes after EPA’s climate rule for power plants; H.J. Res. 136, from Rep. John James (R-MI), which would undo EPA’s new tailpipe standards for passenger cars and trucks; H.J. Res. 133, from Rep. Russ Fulcher (R-ID) which goes after a similar rule for heavy-duty trucks; and H.J. Res. 117, from Rep. Rick Allen (R-GA), which would repeal EPA’s new soot standards. (E&E News)
GOP poised to pounce post Chevron – Republican lawmakers are preparing for the US Supreme Court to issue a ruling as soon as this week that could overturn or scale back the 40-year legal Chevron doctrine, which helps federal agencies defend their rules against lawsuits, reported E&E Daily. Staff for the conservative House Republican Study Committee released a memo Monday outlining ways in which lawmakers could exploit a potential ruling on the Chevron doctrine. “If Chevron is rolled back or overturned, this will be a landmark decision which could open the door to Congress reclaiming its Article One Authority, rolling back Biden’s woke and weaponized administrative agenda, and providing for further pro-growth regulatory policy,” the memo said. (E&E News)
Biochar and the IRA – The US Biochar Initiative (USBI) recently submitted a letter to the USDA NRCS Climate Office advocating for the continued inclusion of Conservation Practice Standard 336 – Soil Carbon Amendment – in the Climate-Smart Agriculture and Forestry Mitigation Activities List. The request emphasised “the importance of biochar as a soil amendment for its unparalleled benefits in sequestering carbon and enhancing soil health”. USBI noted the importance of the listing as NRCS Conservation Practices on the list can access funds made available under the Inflation Reduction Act.
CCUS gains momentum – Pennsylvania’s House committee on Consumer Protection, Technology and Utilities on Tuesday approved Senate Bill 831 (SB 831), which seeks to establish the legal and regulatory framework for potential CO2 capture, utilisation, and sequestration in the state. SB 831 would also direct storage operators to pay the Department of Environmental Protection a fee for CO2 injection, which would be deposited into a Carbon Dioxide Storage Facility Fund. Pennsylvania Senator Gene Yaw (R), the bill sponsor, said the legislation has received support from the Pennsylvania Chamber of Business and Industry, the Greater Pittsburgh Chamber of Commerce, as well as other industry groups and environmental organisations. The bill has now moved to the full House of Representatives for consideration.
Advancing climate goals – The Massachusetts Senate on Tuesday voted 38-2 to pass Senate Bill 2829 (SB 2829), which seeks to expand renewable energy adoption in the state by extending the MOR-EV programme through 2027 and directing utilities to address gas leaks to reduce methane emission. It also incentivises the deployment of solar caponies over large commercial parking lots. The bill is now headed to the House of Representatives for consideration. (Environment America)
AND FINALLY…
Pricey Italian – Extreme weather is hitting exports of Italian agricultural products to the UK, including olive oil, fruit, wine, and prosecco, according analysis by the Energy and Climate Intelligence Unit (ECIU). Exports of those products, based on ‘woody crops’, declined by 11.1% in 2023, the Italian statistics bureau ISTAT reported, citing a number of extreme weather events linked to climate change. Looking at UK government data, ECIU found that that decline in Italian agricultural output played a role in pushing up the cost of food imports to the UK, and consequently supermarket prices. The UK’s imports of Italian olive oil, for example, declined by more than half between 2022 and 2023, while the average price per kilo rose by 53%. The average price of a 500-1,000 ml bottle went up from £3.73 in Jan. 2022 to £8.60 in May 2024. Apple imports from Italy also declined by 5 mln kg, while the average price rose by over 10%, between 2022 and 2023. And prosecco imports declined by 10 mln kg, while the price went up by 11%.
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