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TOP STORY
US regulators charge former CQC boss Newcombe, executives with fraud in landmark VCM case
US authorities have charged Ken Newcombe, the former CEO of project developer CQC Impact Investors LLC (CQC), plus the company’s ex-COO and a former managing director, with fraud, accusing them of submitting false and misleading information relating to the generation of voluntary carbon credits.
EMEA
EU bows to pressure to delay its anti-deforestation law by one year
The European Commission is moving to postpone its regulation against deforestation by one year, in an attempt to please international partners who repeatedly expressed worries about the impacts of the law on supply chains, it announced on Wednesday.
LEAK: EU climate ministers want more countries to contribute to global climate finance goal
Expanding the donor base of international climate finance is a “prerequisite” for an “ambitious” goal due to be agreed at November’s COP29 climate summit, according to the latest draft conclusions by EU climate and environment ministers, seen by Carbon Pulse.
EU to table 2040 climate target plan ‘very early’ next year, official says
The European Commission is preparing to put forward its legislative proposal for a 2040 climate target “very early” in 2025, an official has said, suggesting the EU could be ready to submit its Nationally Determined Contribution (NDC) in time for the UN’s February deadline.
EU’s upcoming Clean Industrial Deal starts to take shape
Due to be unveiled within 100 days after the new European Commission takes office, the Clean Industrial Deal will focus on five key priorities, and put energy-intensive industries like steel and chemicals in the spotlight, a senior EU official has said.
ETS, CCS collaboration should be on the table at Starmer-von der Leyen summit -think tank
A UK and EU ETS tie-up, as well as enhanced collaboration on carbon capture and storage (CCS), are among a number of policies that a think tank has recommended for discussion when UK Prime Minister Keir Starmer and European Commission President Ursula von der Leyen meet on Wednesday.
Ireland hikes carbon tax on fuels, points revenue towards social and climate measures
Ireland will increase its carbon tax on fuels by €7.50 per tonne every year from now until 2029 and hit €100 per tonne in 2030, the government announced Wednesday in a budget that also allocates money towards delivering “secure, stable, and green” energy infrastructure.
Euro Markets: EUAs post lowest settlement in six months as fundamental gloom builds
EU carbon prices fell to their lowest settlement in six months as buying activity was little in evidence as participants continued to eye weak fundamentals, even as weekly position data showed investment funds cutting their bearish bets by around a third, and UK Allowances extended their decline for an eighth straight day.
German asset manager invests in onshore wind farm in Lithuania, brings portfolio to 3 GW
A German asset manager’s fund has made its first renewable energy investment in the Baltics with the purchase of a wind farm project in Lithuania, bringing its portfolio to 3 GW.
Long-time European utility carbon trader joins Dutch bank
A European carbon trader that spent the past 20+ years in various roles at energy companies has joined a Dutch bank.
AMERICAS
ARB drops second LCFS 15-day notice near midnight Eastern to minimise market impact
California regulator ARB slipped a second 15-day package late into the night Tuesday with updates to its Low Carbon Fuel Standard (LCFS) that included an additional feedstock under the contentious crop-based cap, sustainability attestation, and stretched crediting periods for some avoided biomethane projects, among other changes.
Large-scale Illinois CO2 injection well pauses operations following EPA violation
A large-scale CO2 well in Illinois has paused injection for two weeks as operators diagnose an underground leak that resulted in a permit violation notice from the US Environmental Protection Agency (EPA) in August, according to documents shared with Carbon Pulse.
VOLUNTARY
BRIEFING: CORSIA ‘climate club’ seen as answer to voluntary carbon market demand problem
Market participants see the UN international aviation offsetting scheme as the first step in a voluntary credit demand recovery, and hope that other sectors will be inspired to establish similar carbon-buying clubs in the future.
Verra’s review process of Southern Cardamom REDD+ project raises independence, structural concerns, says human rights group
Verra’s review of the Southern Cardamom REDD+ (SCRP) project that led to its suspension being lifted relied heavily on the findings and claims made by its proponent, raising questions about its independence and presenting structural issues in the standard’s environmental and social requirements, according to the human rights group that investigated the activity.
Portugal publishes voluntary carbon market regulations
Portugal’s government has published regulations that will establish an electronic platform for its voluntary carbon market (VCM), which paves the way for registering projects and issuing credits.
‘Shortcomings’ in EU’s CRCF could lead to overestimated credits, report says
Flaws in baseline assumptions and inadequate long-term monitoring could lead to overestimated carbon credits under the EU’s Carbon Removals and Carbon Farming (CRCF) regulation, previously known as the Carbon Removal Certification Framework, according to new research.
Zimbabwe setting up legal framework for ITMO trade -media
Zimbabwe plans to soon boost its carbon market by opening the door to international trade of ITMO credits under Article 6 of the Paris Agreement.
Current voluntary carbon credit pricing ‘misleading’, says BP exec
Carbon credit price dynamics in the voluntary market are currently “misleading”, with a few big tech buyers paying a lot for small volumes, while everything else is going for low prices, a senior figure at BP said on Wednesday.
Peru’s national carbon registry looks to launch by COP29 -official
Peru’s environmental ministry aims to launch the country’s carbon registry by November’s COP29 UN climate summit in Baku, a senior official told the Peru Carbon Forum on Wednesday.
CAR adopts Argentina livestock methane protocol
The Climate Action Reserve (CAR) adopted Wednesday its Argentina Livestock Protocol Version 1.0, which intends to provide guidance to account for and report greenhouse gas (GHG) emission reductions via the capture and destruction of methane from livestock farms.
Korean companies to launch N2O project in Egypt, target nitric production
A South Korea-based project developer and a chemical company have teamed up to pursue an N2O project in Egypt in a bid to generate Article 6 carbon credits from reducing emissions associated with nitric production.
Carbon methodology platform, insurer partner on risk management, profiling tools
A carbon registry and platform has announced a partnership on Wednesday with an insurer to integrate their services, profiling project risks and advising on risk management techniques.
US blockchain-based carbon platform announces Mexican franchise
A Houston-headquartered blockchain carbon credit platform announced Wednesday the establishment of a franchise in Mexico as the company expands its presence in Latin America.
Irish climate tech firm joins European Space Agency incubation programme
An Irish company specialising in carbon removal (CDR) via industrial hemp has joined the European Space Agency’s (ESA) national business incubation programme, it announced Wednesday.
ASIA PACIFIC
INTERVIEW: Australian companies can gain competitive advantage by thoroughly reporting against new mandatory climate requirements
Australian companies are likely to ensure their climate-related reporting is as rigorous as possible as a way to stand out from their competitors, with the new requirements to act as a tailwind for carbon and renewable energy certificate markets, an executive at a market infrastructure provider told Carbon Pulse.
Korean refiner seeks commercialisation of membrane technology in carbon capture process
One of South Korea’s biggest refiners is seeking to commercialise a new membrane technology, as it seeks to tap into the international carbon capture, utilisation, and storage (CCUS) market.
Gas projects, Safeguard requirements will struggle to co-exist in LNG hotspot, report cautions
An expected supply squeeze in Australia’s carbon credit market is set to create challenges for gas producers in its westernmost state whose major LNG ambitions have few options for meeting Safeguard Mechanism requirements beyond buying offsets or investing in CCS, according to a report released Wednesday.
INTERNATIONAL
Pipeline of low-emission hydrogen projects at risk, warns the IEA
Expectations of a low-emission hydrogen boom by the end of the decade could be dashed because a “significant part of the project pipeline” faces delays and cancellations, warns the International Energy Agency (IEA).
Brazil miner teams with European hydrogen company for green steel manufacturing
A global mining company is partnering with a European hydrogen outfit to develop a green hydrogen production facility in Brazil to be used in the manufacturing of European green steel, the companies announced Tuesday.
Governments are neglecting behavioural change in national climate goals -research
Most countries are overlooking the potential for pro-climate behavioural changes from consumers as a strategy to help reduce global emissions by up to 70% by 2050, according to research published on Wednesday.
AVIATION/SHIPPING
Australian shipping tech developer to design CO2 tanks for bulk marine transport
Two shipping companies from Asia Pacific announced on Tuesday a collaboration to further marine transport of CO2 for long distances and large cargo volumes.
BIODIVERSITY (FREE TO READ)
Investors ask US regulator to block JBS listing over environmental concerns
Eighteen investors managing $22 billion have co-signed a letter asking the US financial regulator to stop Brazilian meat giant JBS from listing in the US following concerns around transparency that are refuted by the corporation.
Study flags shortfalls in compensation for lost protected areas
Existing gaps in compensation for lost or downgraded protected areas (PAs) threaten to hamper the achievement of global biodiversity targets, according to a recent paper.
US de-extinction firm raises $50 mln to launch wildlife protection nonprofit
A US-based biotechnology and genetic engineering firm has secured $50 million to launch a foundation with the aim of driving innovation in species protection, it announced Tuesday.
New Forests plans to expand African biodiversity credit preparations
Global forest investor and management firm New Forests is preparing to expand its biodiversity credit baselining work in Sub-Saharan Africa, according to a company executive.
Food industry has highest biodiversity impacts in study of 2,300 companies
The food products industry has the largest biodiversity footprint, followed by oil, gas, and chemicals, said a study of the impacts of 2,369 companies published on Wednesday.
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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!
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
INTERNATIONAL
IETA’s Article 6 asks – The International Emissions Trading Association (IETA) is urging parties to prioritise an agreement on Article 6 at next month’s COP29, stressing the need for an effective international registry that ensures “integrity, transparency, and accessibility” in carbon markets, according to its second position paper on the issue, focused on Articles 6.2 and 6.4. The registry should not impede the quality or scale of Article 6 markets and existing tools, such as the Climate Action Data Trust, IETA said. Market participants need guidance to define criteria for assessing the integrity of ITMOs, while respecting the authority of host parties, it added. Procedures should be simplified, and transparency can promote broad participation and build trust. More position papers are coming this week and next, the association said.
Portfolio reshuffle – Macquarie Group is considering a sale of its offshore wind development arm Corio Generation, as the bank gears towards multibillion-dollar investment decisions on its green power portfolio, Bloomberg reports. The Australian financial giant has appointed its in-house advisory team at Macquarie Capital to explore options for Corio that could include a sale of some or all of the company, according to a person familiar. Macquarie launched Corio in 2022 to expand on its existing offshore wind work and the company has a project pipeline of 30 GW spread globally. It doesn’t currently have any completed or operating projects — all of its portfolio is in development stage that will require significant investment to realise.
Property risk – Former central banker Mark Carney has flagged there will be “significant stranded assets” in commercial real estate as governments push to reach net zero, highlighting the risks to property owners and lenders from older buildings that cannot adapt. Property investors are being hit both by the sharp fall in asset values caused by higher interest rates, and increasingly urgent demands to invest in energy efficiency. “There will be people . . . who either implicitly or explicitly think that these timelines are going to shift, or that somehow or another it is not going to become a binding constraint. But that is a big risk to take,” said Carney, speaking in London for the opening of Eden Dock, a new waterside garden at Canary Wharf. At the COP28 climate conference in Dubai last year, countries agreed to double the rate of energy efficiency improvements by 2030. But in some cases like older, poorly located office buildings, the upfront cost may be uneconomic due to a lack of demand or low rents for the space. (FT)
Partnership – Taiwan’s environment and foreign affairs ministries are preparing to sign an agreement with Paraguay to discuss climate change issues and further strengthen cooperation in carbon reduction, Environment Minister Chi-Ming Peng said in a LinkedIn Post. Paraguay, relying almost entirely on hydropower, has demonstrated outstanding achievements in renewable energy. Circular economy will also be a key area for close cooperation between the two sides in the future, the minister said after a meeting on Wednesday.
Retire RECs with EV charging – Energy Web, a global blockchain non-profit, has launched an app that helps EV drivers ensure that their vehicle charging is powered by renewable energy. The app, called AutoGreenCharge, uses renewable energy credits to match EV charging sessions with verifiable clean energy, according to Industrial News. The app connects to a vehicle’s Smartcar platform, which allows the app to access charging data from the vehicle manufacturer. Energy Web says the app will evolve to allow users retire renewable energy credits with each charging session.
EMEA
Please reconsider – A growing number of governments, international trade organizations, and businesses are urging the EU to reconsider a deforestation regulation set to take effect in December, Associated Press reports. The critics say the regulation will discriminate against countries with forest resources and damage their exports, while supporters of the EU Deforestation Regulation, or EUDR for short, say it will help combat forest degradation on a global scale. Environmental organisations have voiced support for it, and several commodity associations have too, though they say gaps in its implementation could harm their businesses. Officials from leading exporters of affected commodities — including Brazil, Indonesia, and the Ivory Coast — object to the regulation, saying it could act as a trade barrier, negatively affect small farmers and disrupt supply chains. While politicians within the EU have also raised concerns or asked for postponements.
Energy transition shadow – Germany’s three-party coalition government is increasingly fractured following a federal budget crisis and difficult defeats in several elections, casting a shadow over the progress of the country’s energy transition. Coalition squabbles and a weak economy create uncertainty and cause worries about the future of the country’s energy-intensive industries such as automotive and chemicals, which face high energy prices, international competition, and increasing pressure to bring down GHG emissions. One year before the next scheduled national election it is unclear whether the coalition will serve out its term nor about how much can be achieved policy-wise in the remaining time. Parties are already putting forth candidates for chancellor, gearing up for a difficult election campaign as increasingly successful far-right and populist parties stand to benefit from the politicised climate debates. (Clean Energy Wire)
Realism first – There has been a little to no reduction in the average installation cost of heat pumps over the past decade in the UK, according to a study by the University of Edinburgh. Projections suggest a reduction of 20-25% in installation costs by 2030, but this falls significantly short of the targets set by UK policymakers, researchers say. The systems still play a marginal role in heating UK homes, compared with traditional, fossil-based systems. The researchers say policy aspirations should be based on realistic assessments of likely cost reductions, and incentives are needed to address the relatively high upfront costs of some low-carbon technologies.
ASIA PACIFIC
New project – Japanese project developer Green Carbon has signed a memorandum of agreement (MoA) with the government of the Philippines’ Bulacan province to develop a rice paddy project using the bilateral Joint Crediting Mechanism (JCM), it announced Wednesday. Starting with a project of around 800 hectares starting in FY2024, Green Carbon aims to expand the project to roughly 30,000 hectares by 2030. The developer, which recently opened a new sales office in Japan, is also planning to expand further in the Hokuriku and Tohoku regions by promoting the creation of domestically issued J-Credits.
Seagrass pilot – Malaysian water and energy company Jetama has launched a Seagrass Planting Programme in partnership with Universiti Kebangsaan Malaysia’s Faculty of Science and Technology to safeguard Sabah’s marine ecosystems, New Straits Times reported. The pilot project on Sepanggar Island aims to restore subtidal seagrass meadows. Seagrass plays an important role in blue carbon capture, absorbing CO2 up to 35 times faster than rainforests, helping mitigate climate change. It also supports marine biodiversity.
State of affairs – A recent report highlighting the status of the Thai voluntary carbon market found that the number of carbon credits used to offset domestic GHG emissions of organisations, products, events, and personal compensation with T-VERs were 1.88 million till Sep. 2, 2024. Meanwhile, on the supply side, a total of 20.5 mln credits from 173 projects have been certified, the most popular projects being those including renewable energy, followed by waste management and forestry. However, only 3.48 mln of the certified carbon credits have been traded yet. Overall, the report reflecting huge potential for the country’s voluntary carbon market, as local organisations increasingly seek to offset their GHG emissions with carbon credits.
Widespread – An NGO in Papua New Guinea has rejected the claims made by Prime Minister James Marape that the government is sustainably managing the country’s forest, Radio NZ reported. Marape recently made the comments at the UN General Assembly. However, local NGO Act Now said the government was doing nothing to stop widespread illegal logging and in particular the abuse of agricultural clearing licences. The group said PNG was the world’s largest exporter of tropical logs and most of the logging is illegal and unsustainable.
Clear view – Australian smart building materials company ClearVue Technologies has received its first order of its solar building envelope solution to be used for the construction of an equipment screen at a commercial and office building in Perth, Renew Economy reported. The solar building envelope solutions is made up of over 200 pure black PV building envelope modules installed within a framing system that will be used to generate energy. In the last 12 months, Clearvue has won a number of order firsts across the globe, including a first commercial order in the US, as well as entry into the Middle East, North Africa, and Indian markets.
AMERICAS
California pushes pedal on gas price controls – The California State Assembly approved on Tuesday in a 44-17 vote Gov. Gavin Newsom’s proposal to prevent oil price spikes. The bill would empower the California Energy Commission to require oil refiners to increase their gas supplies and to make resupply plans for maintenance outages. The oil industry and other groups have warned that the bill will unintentionally raise prices, E&E News reported on Tuesday.
VOLUNTARY
Scope 3 Claim consultation extended – The Voluntary Carbon Markets Integrity initiative (VCMI) has extended the public consultation on its beta Scope 3 Claim to Oct. 21, 2024. The extension is to ensure a wide range of stakeholders can provide input and ensure the consultation is inclusive and representative, the organisation said on its website. Among the respondents, NewClimate Institute has urged VCMI to abandon its proposal for flexibility mechanisms, saying it is not aligned with and may undermine the improvements expected in the Science Based Targets initiative’s Corporate Net Zero Standard. NewClimate suggests that similar initiatives focus on strengthening the case for corporates to channel more finance as “contributions” to climate action, unrelated to their own targets.
Cover crop credits – Gold Standard has released a new Soil Organic Carbon (SOC) Activity Module focusing on cover crops planted to cover the bare soil during fallow periods to increase soil organic carbon. Developed by Trees Consulting on behalf of Agoro Carbon Alliance US, the module is available since Oct. 2, 2024. Cover crops bring benefits including reduction of soil erosion, nutrient retention, prevention of run-off to vulnerable waterways, and increase of soil organic carbon. The new module is applicable worldwide and offers a tangible incentive to farms to plant cover crops.
First of many – Houston-headquartered biomass carbon removal and storage (BiCRS) developer Vaulted Deep announced Wednesday that it has delivered the first batch of credits to Frontier following its $58.3 mln offtake agreement with the CDR buyers’ club unveiled in May. Per the May announcement, the 10-year agreement with Vaulted Deep involves buying 152,480 credits, equating to $382.35/t between 2024-27, with an option to purchase more credits from future projects at a lower price, and Vaulted Deep said it planned to deliver some 18,320 credits to Frontier this year. Frontier members Stripe and Shopify’s previous purchases from Vaulted Deep included 1,666 t, which also represented the first credit issuance from CDR registry Isometric.
AND FINALLY…
Eat green in Baku – The COP29 Azerbaijan Operating Company is working with the Azerbaijan Standardization Institute to make sure that climate summit delegates eat sustainably when they meet in Baku next month, the Azerbaijani presidency announced. The aim is to ensure that the COP29’s public catering facilities adhere to international and national standards for environmental sustainability, it said. The two organisations are working to reduce operational costs, promote efficient energy and water use, improve household waste management, and contribute to overall “environmental balance and protection”. The institute will assess each public catering facilities ahead of the summit and give recommendations for improvements. The public catering facilities that meet the institute’s standards will be awarded special certifications, which will be visible at the entrance and on a Baku map on the COP29 website – giving all delegates the option to eat only green.
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