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TOP STORY
SCOTUS overturns Chevron doctrine, hindering future environmental rulemaking
The US Supreme Court on Friday overturned the so-called Chevron doctrine, a 40-year-old precedent which held that judges should defer to the expertise of federal agencies like the Environmental Protection Agency when laws passed by Congress are unclear.
EMEA
EU leaders nominate von der Leyen for second term, adopt strategic agenda 2024-29
EU heads of states have nominated Ursula von der Leyen for a second term as European Commission President and adopted a roadmap for the next five years that includes the continuation of European Green Deal priorities agreed over the last mandate.
BRIEFING: What climate policy agenda for von der Leyen’s second term?
Implementation of existing policies and investments in net-zero technologies to meet the EU’s 2030 decarbonisation target will be the cornerstones of the new European Commission headed by Ursula von der Leyen when it comes to climate policy, officials have said.
BRIEFING: EU climate policy focus turning to trade and foreign relations, officials say
The EU’s climate agenda in the past five years has been focused chiefly on domestic action, but the next phase of policymaking will see a growing emphasis on international relations and trade, EU and national officials said on Thursday.
EU firms thrive under higher ETS carbon costs, IMF-backed study finds
European firms are not only adapting but also thriving under rising carbon costs imposed by the EU ETS, new research published by the IMF has found.
FEATURE: Landmark CO2 tax on Danish farming sets global precedent, though ambition scaled back
Denmark’s move to impose a CO2 tax on livestock emissions marks a historic moment in pricing carbon emissions in agriculture, though the level of tax and phase-in schedule was scaled back in ambition, say experts.
Denmark offers subsidies to kick-start CCS development
Denmark has kick-started the bidding process for winning a government subsidy to build carbon capture and storage (CCS) facilities in the country.
Euro Markets: EUAs post 9% loss in June after late rally follows another two-month low
European carbon prices continued their week-long slide on Friday morning to set yet another two-month low amid declining liquidity, before embarking on a sharp rally that was variously attributed to options hedging or to end-of-quarter profit taking by shorts, leaving the market with a monthly loss of 9%.
UN-backed coalition grants $20 mln to Cameroon for adopting sustainable agricultural practices
The Central African Forest Initiative (CAFI) has approved $20 million in funding to Cameroon in order to help smallholder cocoa and coffee farmers adopt sustainable agricultural practices, it announced this week.
AMERICAS
US EPA power plant standards to reduce emissions by up to 240 Mt by 2035 -research group
A controversial suite of US Environmental Protection Agency (EPA) standards on existing coal and new natural gas plants will reduce CO2 power emissions by 155-241 million tonnes by 2035 but fail to see carbon capture and storage (CCS) deployed at a wide scale, according to a note published Thursday by a New York-based research group.
Research group estimates over 200k California ARB-approved offsets lost in recent wildfires
Recent wildfires in New Mexico have eliminated almost 202,000 offsets eligible under California regulator ARB’s compliance carbon market, according to a non-profit research group.
Speculators book profits as RGAs peak, add V25 CCA length
Financial entities continued to trim RGGI allowance (RGA) positions as prices hit new all-time highs, while favouring long-dated California Carbon Allowances (CCA) for the fifth consecutive week despite traders reducing net CCA length across the board, according to weekly data from the US Commodity Futures Trading Commission (CFTC).
Canada modifies carbon intensity values of several feedstocks for Fuel Life Cycle Assessment Model
Canada has updated the carbon intensity (CI) values of various feedstocks used in the federal Fuel Life Cycle Assessment Model, including national and international grid electricity processes, fossil fuels, and crops.
Canada clean fuels supply triples from rising imports, weighing on credit prices
Compliance credit average prices in Canada’s Clean Fuel Regulations (CFR) declined year-on-year as supply tripled from low-carbon-intensity fuels such as ethanol and biodiesel, as imports flooded the nascent market, according to the environment ministry’s first preliminary credit market report.
ASIA PACIFIC
Australia Market Roundup: ACCU prices stable as traders speculate on Safeguard demand, issuance drops
Spot prices for Australian Carbon Credit Units (ACCUs) have traded sideways for much of the past three months, with traders speculating that many facilities covered under the Safeguard Mechanism have already acquired all the credits they need to meet their obligations, at least for the first few years.
CN Markets: CEA hovers around 90-93 yuan, liquidity improves
China’s national carbon market saw allowance prices remain rangebound over the past week with a healthier trading volume, as pessimism persists among participants due to the lack of regulatory developments.
Incoming Indonesian govt to form state-run body to oversee the country’s carbon market
The newly-elected government of Indonesia is working to create a National Carbon Body that will oversee the country’s emissions trading activities, an industry group spokesperson told Bloomberg.
Japan picks nine advanced projects to support CCS commercialisation
Japan has selected advanced carbon capture and storage (CCS) projects for the creation of a CCS value chain, as the country aims to secure a capacity of storing up to 12 million tonnes of CO2 by the end of this decade, the government announced Friday.
Japan publishes draft JCM methodology for rice cultivation, first in agricultural sector
Japan on Friday published a draft methodology under the Joint Crediting Mechanism (JCM) for an increasingly popular farming technique, as the country seeks to expand the scope of the bilateral programme to cover overseas agricultural carbon projects.
INTERNATIONAL
Surge in CCS capacity in next 10 years will still fall short of demand, finds report
Global carbon capture capacity will surge to 440 millions tonnes per annum (Mtpa) while storage capacity will reach 664 Mtpa by 2034, but will still fail to meet demand, global energy data and analytics provider Wood Mackenzie has predicted.
VOLUNTARY
Nature-based avoidance credits ‘red flag’ for potential investors -report
Avoidance offsets, both legacy technology-based and nature-based avoidance credits with co-benefits, are the highest risk areas in the current voluntary carbon market, according to a report published this week.
Verra inactivates more voluntary carbon project methodologies
Voluntary carbon standard Verra on Friday inactivated more project methodologies, adding to the list of protocols being removed from service due to low use or revisions.
New study advocates balanced government incentives, penalties for carbon offsetting in tourism
The world’s governments should balance incentives with penalties to foster more effective carbon offsetting in the tourism industry, a new study recommends.
Mercedes-AMG PETRONAS F1 accelerates net zero efforts with carbon removal credit purchases
The Mercedes-AMG PETRONAS Formula One team has announced new investments in carbon removal initiatives as part of its ambition to become one of the world’s most sustainable sports teams.
BIODIVERSITY (FREE TO READ)
TNFD adopters grow past 400, pass $6 trillion in market capitalisation
An additional 96 organisations have pledged to adopt recommendations on nature-related financial disclosures within the Taskforce on Nature-related Financial Disclosures (TNFD) framework, bringing the total to 416 adopters with over $6 trillion in market capitalisation.
Study finds BNG metric brings no gains for birds, butterflies
There’s no evidence that Biodiversity Net Gain (BNG) units developed using the statutory biodiversity metric in England result in improvements for birds and butterflies, as additional conservation efforts are needed to reach 10% net gain for those species, a newly published study has found.
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CONFERENCES
Carbon Forward Expo – October 8-10, London and Online: Save the date! More info coming soon…
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BITE-SIZED UPDATES FROM AROUND THE WORLD
INTERNATIONAL
SDGs off-track – A new UN report warns that with less than one-fifth of targets on track, the world is failing to deliver on the promise of the Sustainable Development Goals (SDGs) and that without huge investment and faster action, the achievement of SDGs will remain elusive. Only 17% of the SDG targets are currently on track, with nearly half showing minimal or moderate progress, and over one-third stalled or regressing, the report finds. While the effects of the Covid-19 pandemic, geopolitical tensions, and escalating conflicts have severely hampered progress. Urgent priorities identified by the report are to provide more financing to developing countries, resolve ongoing conflicts through diplomacy in order to tackle the number of forcibly displaced people, and deliver effective partnerships to drive transitions on areas like food, energy, and social protection. Success stories highlighted, however, include strides in deploying renewable energy and increasing internet access. Other key findings include that for the first time this century, per-capita GDP growth in half of the world’s most vulnerable nations is slower than that of advanced economies, and that nearly 60% of countries faced moderately to abnormally high food prices in 2022.
Double-edged sword – A new report by the UNFCCC Katowice Committee of Experts on the Impacts of the Implementation of Response Measures (KCI) highlights the dual nature of climate policies: while they offer significant opportunities for vulnerable groups, they also pose risks that necessitate a more inclusive approach to climate policy-making. Established in 2018 at COP24, the KCI assesses the impact of climate change mitigation policies under major global agreements. The report scrutinises four key areas: carbon trading and energy efficiency, coal phaseout, renewable energy adoption, and forestry sector reforms, examining their effects on groups like women, local communities, Indigenous Peoples, youth, the elderly, people with disabilities, and the economically disadvantaged. The findings suggest that vulnerable populations are often sidelined in policy development, leading to unintended adverse effects. For instance, while low-carbon energy policies can lessen women’s domestic burdens, they might also undermine women’s land rights or workforce participation. Similarly, while renewable projects can disrupt traditional practices of local communities and Indigenous Peoples, they can also provide them with clean energy and economic benefits. The KCI calls for more inclusive policy-making processes that involve stakeholders from vulnerable groups to ensure policies are equitable and effective. The report also advocates for further research to better understand and mitigate the negative impacts of climate policies on these groups. By adopting a human rights-based approach, the report aims to guide global efforts towards a just and sustainable low-carbon future.
Corporates go clean – Corporate power purchase agreements, or PPAs, have been a key driver of renewables uptake globally, accounting for 25% of wind and solar capacity additions globally in 2023 outside mainland China, compared to 5% in 2015, according to S&P Global. The momentum has continued this year, with 15.8 GW contracted in the first quarter, growing 36% year on year. Europe led in capacity, while the Asia-Pacific region led in the number of deals, the analysis finds. In terms of countries, corporates have been particularly active in the US, Australia, and India, while solar PV was the preferred technology choice, accounting for half the deals in Q1. Deals by the services sector, led by technology, remained the dominant force in North America and contributed nearly 40% of the deals in Europe.
EMEA
Eastern enthusiasm – The Green Deal in Eastern Europe still lives on following the European elections campaign, during which many political parties in the EU’s east attacked its premise, as during the recent Green Transition Forum in Sofia, stakeholders stressed they want to make the best of the project and EU funding. Most business representatives did not question the future of the Green Deal but focused on the potential benefits to be derived from the green transition, during the Green Transition Forum 4.0: New perspectives for Central and Eastern Europe (CEE) on Tuesday. Kurt Vanderberghe, director general of DG Climate Action of the European Commission said that the focus should be on enabling an industrial policy to support decarbonisation and to ensure workers are re-skilled and upskilled. While he stressed that some countries carry more capabilities to do more on the transition than others. The challenge with upgrading networks to transport renewable energy was also raised by CEO of Electrohold Bulgaria, Karel Kral. While Valentin Nikolov, executive director of Kozloduy Nuclear Power Plant, said nuclear energy is the long-term perspective for green policies. (Euractiv)
Costly cruisin’ – Cruise firm the Carnival Corporation expects to spend a total of $15 mln on compliance with the EU ETS this year. The firm revealed the details of its expected compliance costs in its Q2 results this week, Ship & Bunker reports. The company expects to consume a total of 3 mln tonnes of bunker fuel at an average price of $675/t this year, totalling $2.025 bln in fuel costs. Total expected fuel costs including EUA procurement for EU ETS compliance come to $2.04 bln, meaning the EUA cost alone is anticipated to be 0.7% of its total fuel and emissions bill for the year. Carnival’s exposure to EU ETS costs is lower than for other leading shipping firms as it is less involved in voyages to and from Europe. For comparison, Maersk paid $44 mln for EUAs in Q1, equivalent to about 2.4% of its total bunker and emissions costs, while Hapag-Lloyd paid €22.3 mln ($24.2 mln), or 3.4% of the total. Shipping joined the EU ETS at the start of 2024, meaning all ships larger than 5,000 GT will need to purchase EUAs to cover the emissions for their voyages between EU ports. Ships on voyages between the EU and elsewhere in the world need to surrender allowances against half the emissions generated. The system is being phased in gradually, meaning ship owners pay 40% of the costs for 2024, 70% for 2025, and 100% from 2026 onwards. The first compliance deadline for voyages in 2024 is Sep. 30, 2025.
New sites identified – A study published by the “Nature-based Solutions (NbS) for Climate, Biodiversity and People” project has underlined the role of UAE coastal lagoons in strengthening national climate action plans, biodiversity conservation, and the resilience of local communities. The project, which received funding from HSBC Bank Middle East, is a partnership between numerous public and private sector entities and as part of the project, two priority seascapes were selected in the emirates of Abu Dhabi and Umm Al Quwain, as suitable for NbS interventions.
Partnering up – Germany has agreed to form a climate and energy alliance with Morocco on the expansion of renewable energy and hydrogen production. The European country will need to import as much as 70% of its hydrogen demand in future in its bid to reach net zero by 2045 but lacks the space and conditions to produce sufficient wind and solar energy. The partnership follows the establishment of the largest solar energy station in the world in the city of Ouarzazate in southern Morocco with German support, and Berlin’s contribution to building the first experimental green hydrogen station in Morocco. The latter station is expected to produce about 10,000 tonnes of hydrogen annually, enough to produce 50,000 tonnes of green steel. In March, it was reported that a £16 bln project to export solar and wind energy from Morocco led by developer Xlinks may deliver power to Germany instead of the UK. (Al Jazeera)
Forest fund please – The World Wide Fund for Nature (WWF) in Zambia has urged the creation of a special fund for the forestry sector, proposed during a national budget forum for 2026. WWF Zambia recommended that the government use carbon tax revenues to establish this fund, aiming to strengthen the forestry sector and support the green economy. The organisation criticised the current system where carbon tax revenues are pooled into a general government account, arguing that it neglects the forestry sector despite its role in managing the country’s major carbon sink and contributing to climate targets. The fund would potentially increase the sector’s capacity by providing better resources, tools, and equipment, crucial for Zambia’s environmental sustainability and economic growth. (Xinhua)
ASIA PACIFIC
Climate lawsuit – A regional court in China recently issued a ruling in favour of climate activists in a lawsuit against a coal power plant in Guizhou, according to China Environment News. Several non-profits last year took Shangshang Power Generation to court, as the power plant failed to meet its 2019-20 compliance under the country’s national ETS, damaging public interests and the order of the carbon market. While the company managed to purchase around 820,000 permits for compliance purposes during the lawsuit, the court held that Shangshang’s behaviour had caused substantial damage to the environment. “Although the current legislation does not include CO2 and other GHG emissions as pollutants, those emissions cause climate warming and other environmental problems. The impact cannot be ignored,” the report said.
Supporting SDG bond – Japanese company ByWill has entered into a partnership with Gunma Bank to support the bank’s SDGs private placement bond as a carbon credit provider. ByWill has been working with the bank since March 2024 and through the distribution of carbon credits from this product, the entities will try to achieve carbon neutrality in the Gunma Prefecture. With the bond, Gunma Bank will purchase J-Credits or non-fossil certificates with a portion of the fees received from private placement bond issuers, and offset GHG emissions from public facilities and events hosted by Gunma Prefecture. Further, the Bank will also provide J-Credits and non-fossil certificates to private placement bond issuers, which can then be used for carbon offsets.
AMERICAS
Brazilian CCS capacity – Mauricio Tolmasqui, director of energy transition at state-owned oil company Petrobras, said Brazil has the capacity to 250 Mt CO2 annually, reported EPBR. The company has approved the implementation of a pilot project for CCS in saline aquifers in the north of the state of Rio, with capacity to store 100,000 tonnes annually, planning to not only capture its own emissions but sell storage services. Legislation for a national cap-and-trade system in Brazil would help develop the market for CCS, Tolmasqui said, but yesterday an official said the Lula administration is now targetting passage of the bill by the end of the year after stalling in the Senate. Future oversight of Brazilian CCUS should adopt an experimental regulatory approach based on pilot projects, according to a report published in April.
EPA lawsuits – The Appalachian Region Independent Power Producers Association this week filed a petition to review the US EPA’s controversial power plant pollution standards. The standards rules have already been subject to a series of legal challenges, with other groups to have filed petitions to review including the Idaho Power Company; Midwest Ozone Group; the International Brotherhood of Boilermakers, Iron Ship Builders, Blacksmiths, Forgers, and Helpers; and United Mine Workers of America. In May, a US appeals court denied an immediate stay – essentially a temporary halt pending wider litigation on merit – of the EPA’s carbon capture rule but didn’t decide on the possibility of a longer-term stay. According to a report published Thursday by the Rhodium Group, the EPA standards are expected to reduce emissions by up to 240 Mt by 2035. Elsewhere, the Natural Gas Vehicle Coalition last week filed a petition to review the EPA’s regulations on heavy-duty vehicles announced in March.
Beat the heat, NY – New York Governor Kathy Hochul (D) on Friday announced the release of the Extreme Heat Action Plan (EHAP), developed in collaboration with the state’s Department of Environmental Conservation and Energy Research and Development Authority. The plan focuses on coordinating interagency efforts and mitigating local impacts of increasingly frequent and severe extreme heat events, with the goal to prioritise investments for disadvantaged communities on the front lines of heat exposure. The EHAP Work Group convened more than 25 agencies in the state to collaborate with community partners, planners, adaptation practitioners, local government leaders, and academic experts on immediate- and long-term steps that address exposure to extreme heat, with a focus on alleviating inequities in disadvantaged communities.
Canada on fire – A study published this week in Global Change Biology highlights the significant impact of the 2023 wildfires in Canada on global tree cover and carbon emissions. In 2023, these fires burned approximately 7.8 mln hectares, making a major contribution to tree cover loss globally and accounting for over a quarter of all such losses worldwide. The fires also emitted an estimated 3 bln tonnes of CO2, which was about 25% more than the carbon emissions from all primary tropical tree cover losses combined that year. The study discusses the exacerbating effect of climate change on wildfire frequency and intensity, noting that Canada’s wildfires were probably partly fuelled by extreme heat and low rainfall. It also points out that these emissions are largely excluded from official greenhouse gas reporting under current international guidelines, which may lead to underestimations of national contributions to global emissions. The authors called for an update in reporting mechanisms to include all forest lands, managed and unmanaged, to better align reported emissions with atmospheric observations, thereby providing a more accurate representation of national contributions to global carbon budgets. This adjustment, they argue, is essential for meeting global climate mitigation goals effectively.
YVR carbon removal – The region of Metro Vancouver is considering an ocean alkalinity research trial in spring 2025 to remove CO2 in the ocean for permanent sequestration, the Vancouver Sun reported. The trial would be funded by project developer Planetary Technologies, alongside Ocean Networks Canada and researchers from the University of British Columbia. Alkaline minerals would be added to treated outfall from the nearby Lions Gate sewage treatment plant before it is discharged. The report, delivered to the Metro Vancouver Regional District Climate Action Committee, stated that no regulatory approvals are required.
VOLUNTARY
Abaxx to the futures – Abaxx Technologies Inc. last week launched the Abaxx Commodity Futures Exchange and Clearinghouse in Singapore, introducing five new physically-deliverable commodity futures contracts for LNG and voluntary carbon credits. The futures contracts, which will trade 14 hours a day, Monday through Friday, are supported by clearing members and a range of execution brokers. The exchange also plans to expand soon into battery metals.
Down and Ox – OxCarbon and Downforce Technologies have announced a strategic partnership, leveraging Downforce’s advanced technology for assessing natural capital to strengthen the infrastructure for managing soil organic carbon (SOC) projects. This collaboration enables robust, independent, and transparent tracking and validation of carbon projects, aligning with OxCarbon’s mission to enhance climate impact through a transparent registry, the companies said. Downforce Technologies offers innovative methods using remote sensing for measuring and managing soil carbon, thus facilitating the reduction of GHGs and promoting soil health. The partnership allows Downforce clients to have their SOC projects verified under the ISO 14064-2 accredited Downforce Natural Capital (DNC) program and registered on the OxCarbon Registry, where carbon units are issued for verified carbon removals. Both organisations highlighted the potential of their alliance to deliver high-integrity climate solutions on a global scale, with OxCarbon focusing on innovative climate solutions and Downforce committed to using every hectare of land effectively to combat climate change, preserve biodiversity, and ensure global food security.
INVESTMENT
SAF funding – Aether Fuels has secured $34 mln in Series A financing to support the scale-up of its technology to produce sustainable fuels for aviation and shipping using waste carbon feedstocks in a transformed Fischer-Tropsch (FT) process. AP Ventures led the round, which also included Chevron Technology Ventures, CDP Venture Capital, and Zeon Ventures. While seed round investor Xora Innovation and other existing investors TechEnergy Ventures, Doral Energy-Tech Ventures, Foothill Ventures, and JetBlue Ventures also participated. The company’s technology is known as Aether Aurora and was licensed from partner GTI Energy, promising to slash plant investment and operating cost, while also driving up yield. Aether will use the new funding to further expand its R&D and speed up the build of a 100 gallon-per-day (gpd) test production plant. Aether will begin developing a pipeline of commercial-scale production facilities that include projects in the U.S. and Southeast Asia to produce SAF and other high-value sustainable liquid fuels.
SHIPPING
Shipping breakthrough – A consortium of Japanese firms, spearheaded by the Nippon Foundation, has conducted a demonstration of the first ever zero-emissions ship above 20 gross tons in the country. Sailing 30 kilometres between the Port of Kokura and the Shirashima Offshore Wind Farm, the Hanaria was powered entirely by hydrogen fuel cells. The Nippon Foundation, has been developing the world’s first hydrogen-fuelled ships since Jan. 2022.
AND FINALLY…
Get your glaucs off – Glauconite, a green mineral found on the Atlantic seafloor, presents a significant challenge to President Joe Biden’s offshore wind initiative. This sediment, when disturbed during construction, turns into a sticky, clay-like substance that hampers the driving of monopiles, a common foundation for wind turbines. Identified in several Atlantic wind lease areas, glauconite complicates construction, leading to the potential elimination of turbine positions to adapt to the difficult seabed conditions. This issue adds pressure on the Biden administration, which aims to power 10 mln homes with offshore wind by the decade’s end. The US Geological Survey and other agencies are investigating glauconite’s distribution and properties to better manage its impacts, but the presence of the mineral also stirs conflicts with fisheries, complicating efforts to balance environmental and industrial interests. (E&E News)
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