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TOP STORY
Von der Leyen wins EU Parliament vote, puts ‘new clean industrial deal’ at centre of second mandate
Ursula von der Leyen won the European Parliament’s backing on Thursday for a second mandate as EU Commission President, with a pledge to “stay the course” on climate policy and focus on implementing the Green Deal in the coming five years.
EMEA
Relief in Brussels as von der Leyen’s re-election cements EU Green Deal
Industry, political groups and environmental NGOs largely welcomed Ursula Von der Leyen’s re-appointment as European Commission President on Thursday, citing “continuity” and “stability” in Green Deal policies as reasons for optimism.
UK urged to ramp up emission reductions outside energy supply, or risk missing 2030 target
The new UK government needs to speed up the country’s emission reductions to make up for its predecessor’s slow-down, reversal, and delay of net zero policies – including a strengthening of its carbon trading system, the Climate Change Committee warned on Thursday.
FEATURE: Enhanced weathering alliance seeks EU certification for carbon removals
The Enhanced Weathering Alliance (EWA) has denounced an “opaque” process for developing CO2 removal certification methodologies at EU level, calling on the European Commission to provide more clarity around timelines and deliverables.
EON subsidiary to present carbon crediting plan for battery storage projects at COP29
A subsidiary of large European energy firm EON plans to present a plan for crediting emissions reductions from battery storage projects at COP29 in November.
Net zero policies such as carbon pricing growth can unlock trillions for EU, UK economies
Net zero policies, such as a consistent and strong carbon pricing growth out to 2050, could unlock significant economic growth for the EU and UK economies and bring forward net zero, according to a new report.
Euro Markets: EUAs test major support level either side of short-lived afternoon rally as gas rises
European carbon allowance prices weakened marginally on Thursday, repeatedly testing support at a key psychological and technical level even after a steep rally in gas prices in the afternoon had briefly interrupted EUAs’ bearish trend.
INTERNATIONAL
Slow progress at UN Article 6.4 carbon crediting meeting as summer lull sets in
The UN body mandated to determine rules governing the Paris Agreement’s carbon crediting mechanism has inched closer to providing a basis text for discussion at COP29, in one of the last opportunities to finalise recommendations ahead of the summit in November.
Suriname forest carbon ITMOs attracting interest from 65 companies
Some 65 companies are lining up to buy the first sovereign Article 6 carbon credits endorsed by the Coalition of Rainforest Nations (CfRN), which should be ready for sale in September or October, the organisation told Carbon Pulse Thursday.
VOLUNTARY
Verra pauses review of new voluntary carbon methodology proposals until 2025
Verra will pause the review of new voluntary carbon methodology proposals until the first quarter of 2025 as it implements changes to its review process.
FEATURE: Carbon insurers guarantee durability amid rise of removals offtakes
With buyers securing expensive, large-scale advance purchase agreements for engineered and nature-based carbon removals (CDR), carbon insurers are thinking beyond non-delivery policies and cash payouts to begin guaranteeing credit durability.
European carbon removal accelerator selects eight startups for development phase
An EU-based carbon removal (CDR) accelerator has announced the selection of eight startups for a development stage of its programme, including a ‘negative emission’ coal producer, a biochar firm, and a solution focused on decarbonising the construction sector.
Govt role key in scaling voluntary carbon markets, says OECD
Targeted government support will be needed to scale the supply of high-integrity carbon credits and to ensure strong demand and price premiums for these issuances, the OECD said in a report published Thursday.
New insurance product launched to avoid risk of forestry carbon projects failing to deliver credits
A new voluntary carbon insurance product has launched to avoid the risk of credits failing to be delivered from nature-based projects, initially for reforestation and afforestation activities.
INTERVIEW: Bio-based acids boast 80% lower carbon footprint than fossil-based equivalents
A French company developing bio-based acids for a range of applications from food preservatives to perfume says that its products carry an 81% lower carbon footprint than their petroleum-based counterparts, and could also store carbon depending on the final use case.
Dutch carbon removal startup launches ‘plug-and-play’ direct air capture product
An Amsterdam-based company has launched a new direct air capture product designed to be suited to plug into any removal, storage, or utilisation project across different capacities and sectors.
US NGO partners with investor to scale nature-based carbon removal projects for agriculture
A US-based NGO active in carbon markets has teamed up with an investor to scale funding into nature-based carbon removal projects linked to farming land, they announced Thursday.
Canada invests C$89 mln towards nature-based emissions reduction projects
Environment and Climate Change Canada (ECCC) announced Thursday that it would fund C$89.1 million ($65 mln) across ten nature-based emissions reductions projects, which also aim to conserve biodiversity.
Bahamas’ carbon, digital asset laws launch hopes for lucrative voluntary market
Flagship carbon markets legislation may soon be joined by a bill to weigh in on digital assets, with experts interviewed Thursday expecting liftoff for a market in Bahamian credits owned and managed by the state.
AMERICAS
WCI Markets: CCAs churn post workshop fallout, trade below WCAs
With a high turnover in futures and options trade, California Carbon Allowance (CCA) prices have slipped below Washington Carbon Allowances (WCA) in the aftermath of ARB’s ETS workshop fallout.
Improved planning needed for New York to reach clean energy goals -state audit
State agencies need to improve their planning practices if New York is to reach its statutory clean energy goals, according to an audit released Wednesday by the state comptroller that provides a series of recommendations to do so.
Major Canadian bank to retrofit retail branches with heat pumps, cutting emissions 70%
A large Canadian bank unveiled plans on Thursday to install heat pumps through its retail branch network across the country, which it estimates would reduce emissions by 70% from these locations.
Canadian companies join forces to reduce methanol emissions via CCUS
A Vancouver-based global methanol producer and a Calgary-headquartered carbon capture, utilisation, and storage (CCUS) project developer have announced a partnership to study reducing as much as 400 tonnes of CO2 per day from industrial production.
US CO2 utilisation firm raises $18 mln in Series A funding
A California-based biotech firm that utilises captured CO2 for protein production announced this week it has raised $18 million in Series A financing.
ASIA PACIFIC
AU Market: HIR ACCUs lose market share as sellers wait for better prices, Safeguard demand
There has been a significant decline in the proportion of human-induced regeneration (HIR) ACCUs transacted in the Australia’s brokered carbon market, according to recent data.
Major securities firm becomes the first South Korean financial company to secure international credits
One of South Korea’s largest securities firms has obtained carbon credits from an international project, the first financial company to do so in the country, it announced Thursday.
China’s Heilongjiang sees first forest offset transaction under local programme
A Chinese province known for its local timber industry has completed a first transaction of forest carbon credits under a recently launched provincial programme, as the regional government seeks to explore the potential of nature-based projects.
BIODIVERSITY (FREE TO READ)
INTERVIEW: Ecosystem service credits can unlock corporate purchases in biodiversity markets
Credits tied to single ecosystem services have the potential to drive corporate action in the emerging biodiversity market, as they could help companies effectively address their dependencies on nature, a consultant has told Carbon Pulse.
Swedish developer signs biodiversity credit deal with forestry trading platform
A Swedish biodiversity developer has partnered with the country’s main digital forest and timber marketplace to sell its biodiversity credits on the platform.
Banks must tackle nature loss through circular economy, UNEP FI says
The UN Environment Programme Finance Initiative (UNEP FI) on Thursday launched a guide to help banks implement a circular economy as what it said is a critical way of conserving nature, combatting pollution, and reaching net zero.
Financial nature-related risks overlooked by some G20 regulators, FSB warns
Some G20 regulators have decided not to work on nature-related financial risks due to data challenges and the need to prioritise climate-related analysis, a report released on Thursday showed.
Plan emerges to buy biodiversity net gain units 200 miles from development
A plan submitted for buying units representing habitat uplift, under England’s biodiversity net gain (BNG) scheme, could be the first of its kind, said a lawyer.
Conservation finance group experts call for expanding compliance biodiversity credit markets
A conservation finance group has held discussions on the measures needed to scale the emerging biodiversity credit markets, stressing the importance of advancing government efforts to regulate transactions at a global level.
Biodiversity Pulse: Thursday July 18, 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).
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CONFERENCES
Carbon Forward Expo – October 8-10, London and Online: Our flagship conference returns to the stunning De Vere Grand Connaught Rooms in Covent Garden. As the agenda comes together for our ninth annual event, we want to make sure you don’t miss out on our 20% discount offer, which ends Friday, July 19. We’re also offering free passes for offset buyers. Get in touch to find out if you’re eligible and how to apply. Register now!
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Premium job listings
- Director Carbon Procurement, KliK Foundation – Zurich
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BITE-SIZED UPDATES FROM AROUND THE WORLD
INTERNATIONAL
Green steel growth – The growth in green steel projects around the world is putting the industry on track to reach its net zero emissions goal, according to Global Energy Monitor’s annual report on the industry. Lower-emissions electric arc furnace (EAF) steelmaking accounts for 49% of all capacity currently announced or under construction, up from 43% in 2023 and 33% in 2022, the report said. Under current projections, the global operating steel fleet is set to reach 36% EAF by 2030, just shy of the 37% net zero-aligned target set by the International Energy Agency (IEA), it adds. However, less than 14% of the new projects have moved to the construction phase, and of all projects that have actually begun construction, nearly 46% are still running on emissions-intensive basic oxygen furnaces (BOF).
Norway, Indonesia ink green investment deal – The Norwegian Climate Investment Fund has announced its first direct investments in renewable energy projects in Indonesia, a nation heavily reliant on coal, Solarquarter reports. The investment takes place as part of the Just Energy Transition Partnership (JETP) signed between Indonesia and the G7 group of industrialised countries. The agreement involves the development of small-sale hydropower projects for a total of 1TWh by 2032. It also includes $25 mln to develop solar rooftop solutions for enterprises. Indonesia comprises over 17,500 islands, making electricity supply there a challenge.
EMEA
Spain’s green H2 push – The Spanish government announced new plans on Thursday to boost the country’s green transition with a €2.3 bln clean energy plan that includes subsidies for green hydrogen, Reuters reports. Spain has sought to position itself as a leader in renewable hydrogen production, aiming to take advantage of the country’s abundant solar resources to run electrolysers and generate the fuel. Earlier this month, the government approved a package of subsidies worth €794 mln for green hydrogen projects in the country with a potential overall electrolysis capacity of 652 megawatts, Reuters said.
German budget adopted – Germany’s government has formally adopted the country’s draft budget for 2025 and amended the 2024 budget, which had become a challenging task after a court ruling in late 2023 declared billions of euros earmarked for climate and transformation projects as unlawfully booked. The new budget worth about €480 bln “will adhere to our constitutional rules and to European fiscal rules,” said finance minister Christian Lindner at the budget’s presentation, newspaper Die Zeit reported. The draft budget has been passed by parliament’s budget committee and a final decision on the funding plans is due only in November.
‘Exceptional circumstances’ – The University of Cambridge has scrapped a temporary ban on donations from fossil fuel companies and will now accept sums if they are “for a large gift… usually [of] several million pounds”, reports the Telegraph. The committee on benefactions and legal and external affairs (CBELA) may now accept donations if they are “for a large gift, or equivalent value for a research collaboration (usually several million pounds) which could not be obtained elsewhere”, it announced earlier this week. Such funding must be shown to advance the university’s overall academic and institutional aims and all other sums must be from companies with a net zero by 2050 target, its website said. The move overrules the university’s temporary ban on fossil fuel donations brought in earlier this year due to the associated reputational risk. BP and Shell have jointly donated more than £19.7 mln to the university since 2019, according to the FT.
Methane risks – European banks face significant financial, regulatory, and reputational risks from oil and gas methane emissions in their portfolios, according to the Environmental Defense Fund (EDF), which recommends ways in which banks can better managed financed emissions. EDF’s analysis of Barclays, BNP Paribas, Deutsche Bank, HSBC, ING, Societe Generale, and UniCredit, found that none of them places sufficient attention on engaging with oil and gas clients on near-term methane emission reduction. It recommends they should improve reporting and target setting, including metrics to break out financed methane emissions from financed CO2 emissions. That banks should engage more deeply with oil and gas clients on near-term methane emissions cuts, and that they should publicly support strong methane policies.
Germany holds back EV market – EU electric car sales continued to grow this year – with the exception of Germany, new data show. Battery electric sales in the rest of the EU (excluding Germany) increased by 9.4% on average in the first half of the year, compared to the same period in 2023, according to analysis by Transport & Environment (T&E). In the whole EU, including Germany, the number of BEVs sold grew by just 1.3%.
Unlocking ‘trillions’ from net zero – New research published on Thursday by economics consultancy Oxera said pathways to net zero could unlock significant economic growth for the EU and UK economies. The study explores four levers to achieve net zero across the EU and the UK: regulation, private sector innovation, carbon pricing, and fiscal policy. It finds that a rapid move to net zero could create €6.1 tln in GDP for the EU economy, and support 1.2 to 1.4 mln jobs annually. In the UK, the same levers could create an additional 1.3% growth per year, unlocking up to £765 bln in GDP for the UK economy, and support 213,000 to 309,000 jobs annually, the report says.
ASIA PACIFIC
Bipartisan – A group of industry bodies and climate and environmental advocacy groups have called on Australian governments to maintain the 2030 emissions reduction targets, arguing they are critical foundations for the investment needed to deliver reliable, affordable, and clean energy. It comes as the Coalition opposition has announced plans to pursue nuclear energy in Australia if it wins next year’s election, despite presenting little evidence or detail on how it would achieve it, and will not say whether it will keep the current 43% emissions reductions by 2030 target. While the statement did not explicitly call out the Coalition, the group statement said planning for Australia’s energy future needed to be evidence-based, transparent, and founded in wide consultation. The signatories to the statement included the Carbon Market Institute, Australia Industry Group, Clean Energy Council, Australian Conservation Foundation, WWF-Australia, and Investor Group on Climate Change, among others.
Mutual recognition – South Korea and Italy are working to promote mutual recognition of carbon footprint certification, according to a release by Korea’s Ministry of Trade, Industry and Energy (MOTIE). The ministry has established an ‘international footprint verification system’ that allows domestic companies to undergo such verification at home. To accelerate international recognition, the Korea Institute of Industrial Technology and the Italian Carbon Footprint Program have signed a Memorandum of Understanding (MoU), aiming to conclude a Mutual Recognition Agreement (MRA) between the two countries at COP29 in November. “Once the MRA is concluded, we expect that the carbon footprints acquired by our companies domestically will be easily used in Europe,” MOTIE said.
Ammonia boat work – Japan’s Jera has added to the small but growing proof-of-concept work to develop ammonia as a shipping fuel alternative to fuel oil. The Japanese giant has also been co-firing it with thermal coal at power stations to cut emissions. This week it conducted the first truck-to-ship bunkering of fuel ammonia. It was sent to a tug-boat at Yokohama Port that will become operational late next month. Jera made the fuel supply agreement with shipper NYK in May and the ammonia made from waste plastic by Resonac Corporation. Ammonia is one of several fuels being considered to help decarbonise the shipping sector. While its advantage is that it can be used in existing ships if they are retrofitted, its toxicity remains a serious concern. Jera said it had developed a system “for safely transporting it to and receiving it at the port area, and formulated safety measures to be implemented in the event of a leak”.
AMERICAS
PA CCS bill signed – Pennsylvania Governor Josh Shapiro (D) signed into law Senate Bill (SB) 831 on Thursday, which establishes a regulatory framework for CCS in the state. The bill has proved controversial, with a group of 30 environmental advocacy groups sending a letter Tuesday to Shapiro urging him to veto SB 831, while other groups such as the Clean Air Task Force (CATF) and the Environmental Defense Fund have expressed their support for the measure, according to a Thursday press release from CATF.
Hydrogen hub support – The US Department of Energy (DOE) Office of Clean Energy Demonstrations (OCED) on Wednesday announced it has awarded $30 mln to the California Hydrogen Hub for its first tranche of funding. The Hub is a network of clean hydrogen production sites that incorporate multiple facilities at California ports, with the goal to decarbonise public transportation, heavy duty trucking, and port operations by 2 mln tonnes per year. The project’s total federal cost share is up to $1.2 bln to begin Phase 1 of the project plan. The initiative is led by the Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES), which will conduct planning, analysis, and design activities in addition to ongoing stakeholder and community engagement during Phase 1, anticipated to last up to 18 months.
Small business CO2 – US DOE will fund nearly $6.9 mln in grants to 28 small business research and development projects across the themes of carbon capture, conversion, and storage, as well as carbon dioxide removal, the agency announced Thursday. Projects include carbon capture systems for marine transportation, forecasting of emissions through the use of artificial intelligence, and utilisation of CO2 for concrete.
SAF surge – The US production capacity of sustainable aviation fuel (SAF) could soar 1400% this year if all announced capacity additions come online, according to the US Energy Information Administration (EIA). The EIA anticipates SAF production to rise to nearly 30,000 barrels per day in 2024, up from 2,000 bpd at the start of this year. The primary driver of the agency’s forecasted increase is the rise in biofuels production — up 50% YoY to nearly 30,000 bpd this year. The EIA also projects domestic biofuels production to reach 51,000 bpd in 2025. (Reuters)
Cap-and-trade concerns – Facility-specific caps may help ensure benefits for disadvantaged communities under California’s cap-and-trade programme, researchers from the University of Southern California and the University of California, Berkeley, told participants at a webinar hosted by the state’s Environmental Justice Advisory Committee (EJAC) on Thursday. However, the consequences of such caps, or the establishment of no-trade zones, must be examined due to their potential impacts on revenue, which supports projects for such communities, they said. The researchers also added that these strategies would require resolving additional policy and administration-related complexities in case they were implemented. Nevertheless, they added that a proper execution could yield benefits to disadvantaged groups, particularly in terms of air quality improvements.
WA EITE advisors – Washington’s Department of Ecology (ECY) is looking for representatives from covered entities under the cap-and-trade system to join the emissions-intensive, trade-exposed industries (EITE) Policy Advisory Group. About 40 facilities in Washington qualify as EITEs, including producers of paper, food, building materials, airplanes, semiconductors, and transportation fuels. EITEs receive free allowances each year that cover the majority of their compliance costs until the end of 2034. However, when establishing the Climate Commitment Act (CCA), the legislature did not specify an approach to EITE allowance allocation for 2035-50. The ECY has been tasked with compiling a report that offers information and recommendations on how best to proceed. The advisory group will provide the agency with input regarding no-cost allocations beginning 2025. The deadline to apply to become a member is Thursday, Aug. 8, at 2359 PST.
VOLUNTARY
Down on the Corners – The 4 Corners Carbon Coalition, comprising communities from the Western US, has dedicated $335,000 to fund four innovative CO2 removal projects:
- Bioforcetech Inc. ($50,000) – Incorporating biochar from municipal waste into asphalt and concrete in Boulder, Colorado and Flagstaff, Arizona.
- Carba Inc. ($50,000) – Converting woody biomass into biochar for burial and carbon storage in Flagstaff.
- Gila WoodNet ($145,000) – Processing forest waste into energy and biochar in Boulder and Silver City, New Mexico.
- Wood Cache PBC ($90,000) – Storing woody biomass for improved carbon storage techniques in La Veta, Colorado, and Provo, Utah.
Despite receiving nearly $2.15 mln in funding requests, the coalition selected projects that not only reduce atmospheric CO2 but also address the increasing wildfire devastations in regions like Colorado and New Mexico. These efforts are supported by various expert institutions and demonstrate potential for scalable climate solutions while transforming waste management practices. (Carbon Herald)
Carbon company conception – Brazilian power firm Neoenergia and Spanish nature-based projects developer Carbon2Nature announced Wednesday the creation of a joint venture that will develop projects for the generation and commercialisation of carbon credits. The company will aim to develop reforestation and mangrove projects in Brazil, and estimates to capture more than 10 Mt CO2 over the first few years, considering a tree density of 15 mln trees spread over more than 19,000 hectares. Neoenergia will have a 49% stake in the joint venture, and the company will be controlled by Carbon2Nature with its 51% stake.
AND FINALLY…
Carbon-derived fats – US-based startup Savor has created carbon-derived ‘butter’ that does not require animals or large areas of land for production, New Scientist reported. The firm developed a process that comprises taking CO2 from air, and using heat and hydrogen to form chains that are blended with oxygen. This results in the separation of fatty acids that ultimately forms fat, according to the firm. The butter has been tried, tested, and backed by Bill Gates, founder of tech giant Microsoft, who said he “couldn’t believe he wasn’t eating real butter” when he tried Savor’s product. The company is “cooking up” other types of fats as well, according to its website.
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