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TOP STORY

Brussels considers extending CBAM downstream to crack down on carbon leakage

The European Commission is looking into extending its Carbon Border Adjustment Mechanism (CBAM) to imports of goods further down the value chain, in a bid to keep downstream manufacturing and processing from leaving the EU.

AMERICAS

Regulatory uncertainty dominates North American compliance markets

Analysts at a roundtable during Climate Week NYC said that the regulatory picture was dominating market movements across North American compliance programmes, with policy uncertainty through 2024 weighing on allowance prices in the secondary market.

Alberta TIER September spot prices fall to lowest in two years as illiquidity dampens market

The Alberta Technology Innovation and Emission Reduction (TIER) programme recorded its lowest spot prices in the past two years, attributed to policy uncertainty, according to a report published Tuesday, while worries of forthcoming credit oversupply also shroud the outlook, market observers said.

US carbon refiner to support food supply chain by making protein from CO2

A US-based carbon refiner is in the process of commercialising a way to address food security issues by producing a nutrient-rich alternative to plant and animal-based proteins directly from CO2, according to a Tuesday announcement.

New partnership plans to roll out clean energy tax credit futures platform under the Inflation Reduction Act

A carbon market ecosystem has partnered with a tax credit platform provider to assess the potential for issuing and trading clean energy tax credit future contracts under the US Inflation Reduction Act (IRA).

EMEA

Energy firm unveils plans for UK’s first utility-scale green hydrogen project

A UK energy company has submitted plans for the country’s first utility-scale green hydrogen project to be built in Aberdeenshire.

Euro Markets: EUAs slump to near 5-month low as fundamentals, spreads weigh on prices

European carbon prices fell for a third consecutive day on Tuesday and neared their recent five-month lows, weighed down by a growing focus on fundamentals among participants, weaker energy markets, and an increase in spread trading as traders moved more positions into the December 2025 contract.

ASIA PACIFIC

China’s transformation plan may discourage new coal, report says

China’s transformation strategy for coal-fired power plants could help drive a phase-out of the fossil fuel, given that co-firing and carbon storage approaches remain costly, a report has argued.

Tech startup, financial firm partner to develop cooling materials, create carbon credits

A startup that provides energy-saving cooling materials has teamed up with a Tokyo-listed financial firm to promote decarbonisation services and create carbon credits.

Japanese steelmaker facing ‘impossible’ net-zero challenge, report says

One of Japan’s largest steelmakers is not on track to meet its own stated climate commitments, an Asia-focused think tank has found, saying net zero will be “impossible”.

VOLUNTARY

BRIEFING: Carmakers look at carbon removal credits while awaiting clarity on Scope 3 emissions

An automotive company is encouraging its suppliers to buy removal credits that meet a defined set of criteria, as it awaits further clarity from the Science Based Targets initiative (SBTi) on whether carbon removals will be allowed to meet Scope 3 emissions.

Respira unites with investment firm to launch funds for nature-based projects

Climate financier Respira has joined forces with an impact investment firm to launch two funds for financing nature-based carbon offset projects and accelerating climate action, the investment firm announced Tuesday.

Most private equity firms receive near-failing grades on climate action in 2024 scorecard

A scorecard ranking private equity firms on their climate impact paints a grim picture, with most major players receiving near-failing grades.

Cookstove project developer to expand across Africa after securing $5-mln investment

A cookstove project developer is set to expand operations from Kenya across ten countries in Africa after securing $5 million of investment.

BIODIVERSITY (FREE TO READ)

Australian Cassowary Credit methodology, standard put out for consultation

The market regulator overseeing Australia’s reef credit scheme has published a draft Cassowary Credit standard and Rainforest Replanting methodology for a 30-day consultation, it announced Tuesday.

Australia picks first methodology under Nature Repair Market scheme, opens consultations

The Australian government on Tuesday launched two one-month consultations on the biodiversity assessment instruments and methodology determinations of its Nature Repair Market (NRM) scheme, including eligible lands, activities, and monitoring guidelines.

Swedish platform sees first commercial biodiversity credit transaction

A Swedish exchange offering trade in biodiversity credits on Tuesday announced its first transaction, with a sales and marketing firm picking up units from the protection of an 11-hectare forest area for five years.

Microbes bliss out on white noise, scientists find sound sweet spot that could reverse landscape damage

‘Sound bathing’ can benefit more than just humans, with a study from an Australian university finding even microorganisms enjoy white noise that can help restore degraded landscapes.

CDC Biodiversite flags biodiversity metric “misconceptions”

Aggregated ecosystem condition metrics remain relevant for measuring the impacts of nature funds despite misunderstandings about their application, French data provider CDC Biodiversite said in a paper on Wednesday.

Dutch company plans to develop first nature credits in mid-2025 under Verra’s framework

A Netherlands-headquartered environmental company plans to develop its first nature credits under Verra’s Nature Framework in mid-2025 as part of a restoration project in Portugal, Carbon Pulse has learned.

Biodiversity Pulse: Tuesday October 1, 2024

Presenting Biodiversity Pulse, Carbon Pulse’s free newsletter on the biodiversity market. It’s a twice-weekly summary of our news plus bite-sized updates from around the world

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EVENTS

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 10% discount offer, which is available throughout August. 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!

Climate Impact Partners Webinar – October 2: New research shows major companies continue action on climate. Research from Climate Impact Partners shows that Net Zero targets are up, and that more companies plan to use carbon credits to meet their carbon goals. See how you compare by signing up to a webinar and download the full report into the climate commitments of Fortune Global 500 companies.

Eurelectric’s Power Barometer 2024 – October 3, Brussels: Over the past five years, the power sector has faced unprecedented challenges among the COVID-19 pandemic, the energy crisis, and mounting competition from China and the US. With new policymakers taking office, political attention is now on energy independence, industrialisation, competitiveness, and the ongoing climate battle. Eurelectric Power Barometer 2024 data report will take stock of these developments with DG ENER Director General Ditte Juul Jorgensen, MEP Niels Fuglsang, and SSE Managing Director Sam Peacock. Make sure to join them at our free launch event! Register here

Chile Carbon Forum – October 8-10, Santiago: The forum will bring together experts, business leaders, and government officials to discuss challenges and opportunities within the carbon market. It will cover topics such as carbon taxes, offsetting mechanisms, climate finance, carbon market regulations, international cooperation, nature-based solutions, and innovative emission reduction strategies. The agenda includes panel discussions, workshops, and keynote speeches that emphasize the importance of these topics in promoting a low-carbon economy and combating climate change. This forum is crucial for understanding and advancing collaborative approaches to sustainability. For more information, visit Chile Carbon Forum.

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BITE-SIZED UPDATES FROM AROUND THE WORLD

AMERICAS

Challenges captured – The carbon capture industry in the US must be “clear-eyed” about the challenges despite its advancements in the sector, said Brad Crabtree, assistant secretary of the Department of Energy’s (DOE) Office of Fossil Energy and Carbon Management (FECM). Speaking at a carbon management conference, Crabtree said hurdles range from demonstrating the commercial viability of carbon capture technologies across all major industries within this decade as well as accelerating permitting processes. Another concern is ensuring that the communities benefit from the carbon capture process, he said. One of DOE’s priorities is large-scale carbon capture deployment on natural gas facilities, including ones used for power generation, heavy industries, clean hydrogen, and ammonia, Crabtree said. (E&E News)

CA climate disclosure – California Governor Gavin Newsom (D) signed into law Friday SB 219 that updates SB 253, which mandates companies doing business with annual revenues exceeding $1 bln to disclose their full Scope 1–3 GHG emissions. SB 219 postpones the implementation timeline of SB 253 and eases some other provisions, but notably does not change the requirement for entities to report their GHG emissions beginning in 2026. The newly signed law also makes changes to SB 261, which would require companies doing business in California with annual gross revenues exceeding $500 mln to report on climate-related financial risk. For example, SB 219 removed the requirement from this bill for obligated companies to enter into contracts with a climate reporting organisation to prepare a biennial public report on those financial risks following a review of the disclosures.

Fraud prevention – The US Department of Energy (DOE) has initiated a project for the agency to adopt corrective measures to reduce fraud in the Home Electrification and Appliance Rebates Program authorised by the Inflation Reduction Act (IRA). This action follows areas of concerns identified by the Office of Inspector General (OIG), an agency watchdog, as well as recommendations offered to reduce instances of fraud observed in the Pandemic Relief Programs. Relating to the rebate programme, the OIG concluded that the DOE’s State and Community Energy Program Office (SCEP), the administrator, did not adopt best practices to implement an effective fraud prevention programme, and allowed “self-certification” to meet income qualifications. The watchdog said fraud prevention is dependent upon the proper collection and use of data related to these best practices, adding that the DOE should adopt guardrails to mitigate such losses.

Youth against EPA  – Attorneys for a group of young California climate activists have asked a federal judge to revive their lawsuit against the US Environmental Protection Agency (EPA), but the case is unlikely to succeed, E&E reported Tuesday. The lawsuit, filed by 18 youth plaintiffs from California, alleges that the EPA has harmed and discriminated against the plaintiffs by enabling climate pollution. Oral arguments before Judge Michael Fitzgerald of the US District Court for the Central District of California on Monday followed a decision in May that dismissed the young activists’ lawsuit, although the judge offered one more opportunity to revise their complaint. Fitzgerald, who said in May that the California youth lacked standing to bring their lawsuit because their complaints could not be fixed by a court, opened Monday’s hearing by saying he had “yet to be convinced” that the judicial system could help the challengers.

Nice try – California Governor Gavin Newsom (D) on Friday vetoed a bill (AB 2513) that would have mandated labels on gas stoves warning of health risks. While noting an appreciation for the attempt, Newsom said the bill was “highly prescriptive” and could only be changed via future statutes. Thus, the proposal wouldn’t enable updates based on the most recent scientific knowledge to best inform consumers, according to Newsom.

Lobby group membership – BluSky Carbon has joined the German association for negative emissions DVNE, the US-based CO2 removal startup announced on Tuesday. The DVNE is a multi-stakeholder, industry-led platform aimed at developing policies to support the growth of the carbon removal industry in Germany and Europe. “BluSky already works with some of the DVNE member organisations regarding carbon removal verification technologies, as well as business development and sales opportunities,” said Will Hessert, CEO at BluSky. “We aim to do our part to participate, learn, and bring some of the policies and ideas home in order to help build a more robust industry in North America.” 

Alabama CCS update – Nebraska-based energy company Tenaska released the results of an economic impact study of its carbon capture and storage (CCS) project in Mobile County, Alabama, known as the Longleaf CCS Hub. Construction is anticipated to span three years and is expected to generate $618.6 mln in economic revenue impact, defined as the overall economic activity from the project’s activities. Once operational, it is expected to have an annual impact of $24.7 mln in economic revenue impact. Tenaska said that its Class VI permit is under review by the EPA and still looks to begin construction in late 2025, with commercial CO2 injection a year later. The firm has solicited interest from a number of emitter customers in the region and ultimately, construction will be synchronised with customer readiness to capture CO2.

Better late than never – Canada’s finance department will send more than C$2.5 bln in overdue carbon pricing rebates to roughly 600,000 Canadian businesses in December, Finance Minister Chrystia Freeland announced Tuesday. The cheque will return a portion of carbon price revenues from 2019-20 to 2023-24, but the amount received by a business depends on which province it operates in and how many workers it employs. For example, an Ontario business with 10 employees can expect to receive roughly C$4,000, while a Saskatchewan business with nearly 500 employees will receive nearly C$577,000. (The Canadian Press)

ASIA PACIFIC

Reiteration – Chinese regulators recently issued new policy guidelines to strengthen the ‘clean and efficient’ use of coal across the entire value chain, a move reflecting efforts by the coal sector to defend its long-standing narrative, according to non-profit Centre for Research on Energy and Clean Air (CREA). The latest guidelines reiterate previous national action plans that emphasised improving energy efficiency and pursuing lower-carbon coal consumption methods in the power and industrial sectors, as well as ‘cleaner’ utilisation and retrofitting, CREA said in a LinkedIn post on Tuesday. Beijing’s continued focus on enhancing ‘clean coal’ risks delaying China’s pledge to phase down coal consumption and efforts necessary for aligning with the country’s climate goals, CREA noted.

Hydrogen hope – Australia has opened one of its first hydrogen research hubs at Deakin University’s Warrnambool campus, a coastal holiday town several hours west of Victorian capital Melbourne. The Hycel Technology Hub was officially opened by state Minister for Climate Action, Energy and Resources Lily D’Ambrosio. The 2,200 square metre facility is the first of its kind in Australia and is designed for hydrogen research, demonstration, testing and training. It was built along a key interstate transport corridor that connects industries, communities and resources, and is within a Victorian Renewable Energy Zone.   

Experimental- Australia’s AGL Energy has reported success with an initiative that will allow it to shut down coal units in the middle of the day to make way for renewables, Renew Economy reports. The company, Australia’s largest operator of Australia’s coal-fired power station fleet, conducted trials at its Bayswater generator involves “two-shifting” whereby a unit is taken offline and brought back online within a 12-hour period. This is significant because if coal generators are more able to turn their own units off, this could allow more wind and solar production, and incentivise more renewables energy projects to be built.

EMEA

Contract extension – The European Energy Exchange (EEX) will continue to serve as the common auction platform for the EU’s emission allowances until the end of 2026, following the extension of the original five-year contract, the exchange announced on Tuesday. The third platform under this contract covers EU ETS allowances for electricity and heat generation, energy-intensive industry, aviation, and maritime. A separate system for buildings, road transport, and additional sectors, EU ETS2, is set to begin auctioning allowances in 2027. The current contract has been extended to align the fourth common auction platform with the start of EU ETS2 allowance auctions, EEX said.

Low-carbon construction – With up to 65% of office buildings globally at risk of becoming obsolete by 2030 if they fail to decarbonize, a new report from JLL highlights three key areas of focus: energy efficiency, electrification, and clean energy​. Researchers compiled data from over 46,600 buildings across 14 global cities, finding that energy retrofits can deliver up to 40% energy savings depending on building type, translating into €2,6 bln in operational savings globally​.

InvestEU sustainably – Halfway through its lifetime, the EU programme designed to investment in the green, digital, and social transition has so far unlocked €218 bln of additional investment, with 90% of the EU guarantee allocated, the European Commission said on Tuesday. The InvestEU programme was launched in 2021 to bridge investment gaps in EU policy priorities, such as renewables and clean industrial manufacturing. The goal is to trigger over €372 bln of public and private investment by 2028, with an EU budget guarantee of €26.2 bln. At the midway point, the Commission finds that InvestEU is pioneering new financial products in the market including guarantees for sustainable SMEs and clean industry.

Norway’s climate target – The government of Norway has asked for inputs on what the country’s 2035 climate target should be and how it should be designed. In line with the Paris Agreement, Norway must submit new climate targets for 2035 to the UN, and the government has launched a public consultation on the topic. The options on the table range from 55% to 80% emissions reduction compared to 1990, which is expected to be achieved through national emissions cuts and by purchasing emissions reductions from other countries. The deadline for submissions to the new climate target is Jan. 1, 2025, with the final proposal to be presented to the Norwegian parliament before Easter 2025.

Cable fundraising – British startup XLCC aims to raise over £1 bln for a factory in Scotland manufacturing subsea high-voltage cables vital for Europe’s transition away from fossil fuels, reports Bloomberg. Morgan Stanley has been hired to assist in the fundraising process, expected to launch mid next year. The company plans to produce the cables needed to connect offshore wind farms as well as under-sea connections linking countries’ power grids. It aims to deliver the first cable by 2030 and would be a boon for the UK, which hosts few factories to supply its strong offshore wind sector.

Public consultation – The Global Carbon Council invites all stakeholders to provide their feedback on the draft GCC Grievance and Appeal Procedure, now open for public comment until Oct. 15. This procedure is designed to ensure transparency, fairness, and accessibility for resolving grievances and appeals related to projects registered under the GCC.

Just a drop – Global commodity trading house Marex announced Tuesday it has acquired Spanish biofuels company Droplet as a way to expand its range of renewables products. The company said Droplet offers execution services for both physical and paper biofuels products across Europe, Latin America, the Middle East, and Africa. The acquisition, the dollar-value of which was not disclosed, will give Marex additional capabilities in physical biofuels products, it said.

VOLUNTARY

Azerbaijan’s VCM – The British Embassy to Azerbaijan, the British Standards Institution, the British Chamber of Commerce in Azerbaijan, and the rating agency BeZero Carbon are working to raise awareness in the country’s voluntary carbon market, ahead of next month’s COP29, Trend News Agency reported. As part of this, the group was due to hold seminars in Baku on Tuesday and Wednesday to discuss how to build capacity and understanding for companies seeking to set net zero policies, financial intermediaries, emission verification bodies, and quality infrastructure organisations.

Better together – Carbon markets intelligence service Allied Offsets has partnered with Ecoptima, an AI-powered ratings agency for carbon projects. The partnership aims to combine the market data offering of Allied Offsets with Ecoptima’s AI-driven rating models to help market players make better decisions. Through the partnership, AlliedOffsets will contribute its market data to enhance Ecoptima’s innovative ratings system, while AlliedOffsets users will now be able to access Ecoptima’s public ratings directly from its platform.

Unintended impacts – Rainforest Foundation UK (RFUK) is partnering with Shibuye Community Health Workers, the Kenya Land Alliance, and TMG Research to launch a new programme aimed at monitoring the impacts of carbon market initiatives on local communities. The collaboration will expand RFUK’s use of ForestLink to support women with land rights issues and examine the effects of carbon offset programmes on vulnerable populations. Local partners in Kenya report that carbon projects can have unintended consequences on local people in terms of food security and gender equality, as land once used for subsistence farming has been repurposed for carbon capture while the financial benefits of carbon projects often flow largely to men, who hold land tenure rights.

Big bucks – Oman’s voluntary carbon market could reach an annual value of $500 million, according to a senior official at the Gulf country’s soon-to-be-established Oman Net Zero Centre (Oman Observer). Mohsin al Jabri said in a presentation to business leaders at the Korean Embassy in Muscat that renewable energy, agroforestry, and afforestation project types could already be harnessed for the market, noting that other opportunities such as carbon capture and storage (CCS), direct air capture (DAC), coastal nature-based solutions like mangroves, e-mobility, and flaring reduction could all be viable down the line.

One in the CH4amber – CH4mber Technologies, another company that generates carbon credits by decommissioning orphaned oil and gas wells, has successfully completed a new investment round. It declined to indicate how much it had raised or who the investors were. The company said the funding will help scale its well-plugging operations and reduce methane emissions, particularly in the Appalachian Basin, and enhance its methane detection capabilities.

AND FINALLY…

What a man gotta do – Joe Jonas, a member of the American pop trio known as the Jonas Brothers, has teamed with non-profit video game platform PlanetPlay to support the organisation’s Make Green Tuesday Moves (MGTM) initiative, to advance environmental initiatives through game play. Beginning Oct. 1, the MGTM games will launch exclusive characters, skins, badges, and other items featuring Jonas for players to download, with all proceeds invested into projects by PlanetPlay’s eco-donate platform, including reforestation, renewable energy, and ocean cleanups. These initiatives include the Hongera Project, which distributes clean cookstoves, and the WAI Wanaka water conservation project in New Zealand.

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