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CARBON FORWARD LONDON
UK could consider using Article 6 credits for ‘above and beyond’ mitigation as it mulls next NDC
The UK may use Article 6 credits for “above and beyond” mitigation, pending a decision on how to approach its next set of UN climate goals, with the country’s lead Article 6 negotiator hopeful for a breakthrough in talks at the upcoming COP29 meeting, a conference heard Tuesday.
Airlines see CORSIA credit supply ‘tipping point’ approaching
The current lack of supply in carbon credits approved under the UN’s CORSIA carbon offsetting scheme could be coming to an end in November when new voluntary carbon standards are expected to be approved under the scheme by the International Civil Aviation Organisation (ICAO), industry officials say.
Investors call for detailed data to mitigate risks as EU ETS free allocations shrink
Investors want detailed data and long-term investment strategies to navigate future carbon pricing scenarios, as they prepare to work in a context with fewer free allowances in compliance markets.
Most VCM participants now seek compliance-eligible projects -ratings agency
Most voluntary carbon market (VCM) investors are now only looking at projects expected to fit within regulated regimes, like CORSIA or Article 6, according to the head of a carbon project ratings agency.
EMEA
INTERVIEW: Europe’s net-zero agenda must get to grips with geopolitics
Geopolitical risk must be put at the heart of government and business decisions for Europe to retain its climate leadership and succeed in bringing down emissions, a German climate, energy, and security expert told Carbon Pulse.
INTERVIEW: Carbon capture and usage must work for refractory giant to preserve European business
An industrial ceramics producer that is facing significant additional costs under the EU ETS if it doesn’t decarbonise fast enough views capturing carbon and converting it into useful products as vital to its continued business offering in Europe.
Methane standards-setter announces certification of Europe’s largest LNG terminal
A Colorado-based methane standards-setter has certified Europe’s largest LNG terminal, it announced on Wednesday during the BloombergNEF London Summit.
Euro Market: EUAs re-test six-month lows as selling pressure continues to dominate
European carbon allowance prices came under renewed pressure on Tuesday amid continued gloomy macroeconomic and geopolitical sentiment, but sustained selling encountered support marginally above Monday’s six-month low.
Two UK carbon capture projects progress towards start-up by 2030
Two bioenergy carbon capture and storage (BECCS) projects have passed the ‘deliverability assessment’ as part of the UK government’s HyNet cluster expansion process, putting them on track to become operational by 2030, the developer announced on Tuesday.
BRIEFING: UK considering key reforms in next renewables auction
The UK government is considering key reforms to the next renewables auction in 2025 including on reference price reform, longer contracts, and capacity targets, an official said on Tuesday.
AMERICAS
BRIEFING: Chile welcomes nearly a dozen projects into Article 6 pipeline
Chile has nearly a dozen Article 6.2 projects in various stages of development, including an imminent issuance, and is working to develop an official taxonomy of priority project types, Carbon Pulse heard at the Chile Carbon Forum in Santiago on Tuesday.
Chile looks to double offsets toward CO2 tax, accept more registries in 2025 -official
Chile’s environment ministry aims to double the carbon tax liability ‘paid’ in carbon credits next year and businesses are on board, Carbon Pulse heard from an official at the Chile Carbon Summit in Santiago on Tuesday.
UK miner developing blue carbon methodologies in Chile
A UK-based mining company said Tuesday that it is developing new methodologies for blue carbon projects that aim to increase the carbon sink capacity of Chilean coastlines.
RGGI maintains even keel in Q4 auction volumes amidst slump in RGA prices
RGGI states will offer a similar volume of permits at their Q4 sale as the prior quarter, according to a Tuesday announcement, even as RGGI Allowance (RGA) prices in the secondary market have declined 27% since the September auction.
US taps $104 mln for rural America clean energy programmes
The US Department of Agriculture (USDA) announced funding for anaerobic digesters, a biomass plant, and an ethanol production project as part of a large $104 million package of clean energy awards to spur economic development in rural areas.
ASIA PACIFIC
FEATURE: New Zealand looks to bring back gas, but challenges abound
A spike in the electricity price at the end of August in New Zealand forced an urgent review of the power sector and helped hasten a possible return of gas, via reversing a ban on new exploration permits put in place in 2018 by the then-Labour government.
Vietnam rules out int’l sales of pilot ETS carbon units
Vietnam won’t allow the sales of any carbon units from its emissions trading scheme until after the pilot phase ends in 2028, local media reported Tuesday, citing the deputy prime minister.
BHP, Indian steel giant sign MoU for new ways to make commodity more cleanly
The world’s largest miner, BHP, is partnering with a steelmaker to start addressing its iron ore Scope 3 emissions, it announced Tuesday.
Taiwan plans to introduce domestic version of CBAM next year, minister says
Taiwan is planning to introduce its own version of a carbon border adjustment mechanism (CBAM) as a supplementary measure to an upcoming carbon levy programme.
Singapore opens decarbonisation plans for comment ahead of NDC submission
Singapore has opened its decarbonisation plans for public comment beginning Tuesday, as it begins work on its upcoming Nationally Determined Contribution (NDC), due in 2025.
Australian climate tech VC firm raises A$100 mln in new round
An Australian climate tech company has raised A$100 million ($67 mln) from the nation’s oldest bank and its clean energy financier for investment into a range of decarbonisation areas, it said Tuesday.
INTERNATIONAL
Climate finance takes a backseat at key EU council meeting
The war in Ukraine dominated the 27 EU finance ministers’ meeting on Tuesday, relegating discussions on the new global climate finance target (NCQG) to a secondary role, with only five weeks to go until the COP29 UN climate talks.
VOLUNTARY
Voluntary carbon markets need comparable assets to function -Chilean official
To function smoothly, carbon markets need increased transparency and more fungible assets, a Chilean official from the Ministry of Finance said at Chile Carbon Forum in Santiago on Tuesday.
European accelerator marks entry into Indian carbon removals market, selects first cohort of local startups
An Amsterdam-based carbon removal accelerator has selected its first cohort of Indian climate startups to scale carbon removal solutions across the country, marking its entry into the Asian market, it announced at an event in Mumbai on Tuesday.
US carbon standard registers first biochar project
A US-based carbon credits standard has registered the first project under its biochar methodology, the company said in a press release.
SHIPPING
UK shipping industry lays out £700 mln investment plan to reach net zero by 2050
A UK shipping trade association is calling for a £700 million government investment in the country’s upcoming budget, as part of a roadmap to carry the sector to net zero emissions by 2050.
BIODIVERSITY (FREE TO READ)
More than 6 mln ha of forests lost last year raise concerns over 2030 global targets, report says
Global deforestation rates are on the rise despite international high-level commitments towards 2030, with a loss of over 6 million hectares of forests only in 2023, according to an annual assessment released Tuesday.
Proposed nature metrics need to be more rigorous, global nature summit hears
A proposed biodiversity measuring metric initiative needs to factor in the interplay of climate change and proposed actions, rather than simply focusing on observing changes, an expert told the Global Nature Positive Summit in Sydney Tuesday.
BNP Paribas, French NGO launch impact loan vehicle for coral reef conservation, target $35 mln
A French NGO has partnered with a business accelerator managed by BNP Paribas to launch an impact loan facility for scaling blended finance towards marine conservation efforts in the Global South, aiming to raise $35 million.
Quebec announces C$922 mln biodiversity action plan
The government of Quebec, in Canada, has announced a C$922 million ($676 mln) action plan to advance nature protection and restoration across the province.
INTERVIEW: Small sites should be exempt from biodiversity net gain
The English biodiversity net gain (BNG) small sites exemption should be expanded, as minor developers are disproportionately affected, a consultant told Carbon Pulse, contrasting calls to move in the opposite direction.
Biodiversity Pulse: Tuesday October 8, 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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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!
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.
Calyx Webinar – How to buy high-quality carbon credits – Nov. 6, 1100 EST (1600 GMT): Buying quality carbon credits in today’s carbon market can feel like an obstacle course full of hurdles and roadblocks, but despite challenges, many sustainability leaders have done this successfully. We gathered experienced carbon market participants from across industries to share their processes, advice and secrets to success. If you’re purchasing carbon credits in the next six months, this is a discussion you won’t want to miss. Register here. If you register but cannot attend live, you will receive an on-demand recording after the webinar.
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BITE-SIZED UPDATES FROM AROUND THE WORLD
INTERNATIONAL
EMEA
Biz wants ETS tie-up – The British government could accelerate the shift to net zero emissions by linking the UK and EU carbon pricing systems, which would make the emissions market more attractive, the UK’s biggest business lobby group, CBI, said in recommendations published ahead of the UK’s Autumn Budget release. An ETS link-up would prevent carbon leakage and high implementation costs from carbon border adjustment mechanisms, it said. The CBI also called on the government to develop green tax incentives that promote high-growth clean technologies. A 10% corporate tax rate for green profits and an enhanced green super-deduction would help to unlock private sector R&D and keep up the UK’s international competitiveness. A net zero investment plan is also needed by 2025, setting out investment requirements, targets, and a delivery plan. This would help to crowd in private investment and maximise growth sectors that receive public investment. Chancellor Rachel Reeves is due to present the Autumn Budget on Oct. 30.
UEFA can do better – UEFA’s climate funding is falling short of its potential, despite the huge revenue generated on the field during this summer’s Euro 2024 football tournament in Germany, the NGO Carbon Market Watch (CMW) said in a post. This comes after the European football association announced the completion of its €7 mln climate fund, which UEFA created to address the emissions it deemed unavoidable from the Euro 2024. The fund will go towards investment in sustainable infrastructure across amateur clubs and regional associations in Germany, UEFA said in July. This shifted UEFA’s focus from contentious carbon offsetting to beyond value chain mitigation, under which organisations typically calculate their emissions footprint before applying an internal carbon price to their unavoidable emissions, CMW said. This is an improvement, but UEFA’s internal carbon price of €25/t is far too low, it said, noting that the Germany environment agency recommended €237/t in 2022.
EU flood aid – The European Parliament on Tuesday (Oct. 8) approved over €1 bln in aid from the EU Solidarity Fund to support recovery efforts in five EU countries following severe floods that occurred in 2023. Slovenia, Italy, Greece, France and Austria will receive respectively €428.4 mln, €378.8 mln, €101.5 mln, €46.7 mln, and €5.2 mln in assistance the Parliament voted, saying the aid will cover part of the costs of emergency and recovery operations, including repairing damaged infrastructure, safeguarding cultural heritage, and conducting clean-up operations. MEPs pointed to the “increasing number of severe and destructive natural disasters in Europe” and called on the corresponding EU budget to be increased.
Climate champions – A new group of 20 cities received the EU Mission Label for their efforts towards climate neutrality. These are: Aachen, Münster (Germany), Trikala (Greece), Miskolc (Hungary), Eilat (Israel), Bologna, Bergamo, Milan, Prato, Turin (Italy), Liepāja (Latvia), The Hague (the Netherlands), Porto (Portugal), Bucharest 2nd District, Suceava (Romania), Ljubljana, Kranj (Slovenia), Gothenburg, Gävle, Umea (Sweden). The announcement brings the total number of cities with the label to 53.
Get ready for CSRD – The EU’s vast Corporate Sustainability Reporting Directive (CSRD) begins to take effect in January and, by 2026, is set to require more than 40,000 companies to disclose comprehensive sustainability data, from their carbon emissions to their social impact, according to a guide on CSRD compliance published by sustainability platform Watershed. CSRD is more than compliance, Watershed said, it’s an opportunity for companies to redefine how they measure success. The guide provides tips on conducting the required double materiality assessment, compares CSRD to other reporting frameworks, and gives guidance on how to prepare for CSRD audits and assurance.
AI for carbon – A Dubai-based company that uses blockchain and AI to manage carbon emissions has raised $3 mln in pre-seed funding to expand its operational scope and establish an office in Abu Dhabi while recruiting new people to scale its offerings. The $3 mln were raised in a pre-seed investment round, the company announced on Sept. 24. Coral’s blockchain backend allows full lifecycle traceability of carbon credits and real-time auditing of offsets to ensure quality and transparency, the company claims.
Buildings for net zero – Engineering company Mott MacDonald has been appointed by the Mayor of London to deliver the Zero Carbon Accelerator, aimed at helping organisations decarbonise in the built environment to achieve the capital’s net zero target by 2030. With buildings accounting for 67% of the capital’s carbon emissions, the Zero Carbon Accelerator will help organisations such as local authorities and health, education, and social housing providers, to come up with net zero plans to reduce their environmental impact, the announcement said Tuesday. Key programme elements include expert consultancy on technical expertise, skills and project development, and procurement and funding/finance.
Green H2 bets – Saudi Arabia is preparing to make a multimillion-dollar bet on hydrogen and will launch a new company to produce the fuel, said people familiar speaking to Bloomberg. The kingdom’s sovereign wealth fund, chaired by de facto ruler Crown Prince Mohammed bin Salman, has created a company called Energy Solutions Co. to finance so-called green hydrogen power production. The Public Investment Fund expects the firm to invest at least $10 bln, with some investments to be made alongside Saudi Aramco. The new company could be formally announced as soon as this month, they said.
Nigeria’s carbon potential – The Nigeria House of Representatives on Tuesday tasked the Federal Government with further exploiting opportunities for sustainability and green jobs, highlighting that the African Carbon Market Initiative predicts Nigeria could generate over $500 mln annually by 2030, supporting over 3 million Nigerian jobs through the carbon markets. It also flagged the need to explore employment and investment opportunities in climate investment funds with a value of $23 bln for 2024, the Nigerian Tribune reported.
ASIA PACIFIC
Pongamia oil-turned fuels – A business consortium led by the Tokyo University of Agriculture and Technology has teamed up with a state government in Australia to mass produce sustainable aviation biofuel using pongamia oil trees, according to Asahi Shimbun. The project, which could receive an injection of up to 100 billion yen ($674 mln) from businesses, will start in Queensland by March, the report said.
Not waste – Department store chain Takashimaya and five other companies have participated in a project that seeks to transform wasted cooking oil into sustainable aviation fuel (SAF), it announced Tuesday. As part of the Fry to Fly Project, biofuel solution provider Revo International will collect waste oil from Takashimaya’s commercial facilities and restaurants and produce SAF at Sapphire Sky Energy’s manufacturing plant. The facility is scheduled to be completed by the end of 2024 and begin operation in 2025, with an expected capacity of supplying around 30 mln litres of SAF per year.
Carbon capture partnership – Japan’s Mitsubishi Electric Corporation and Finland-based VTT Technical Research Centre have agreed to collaborate on the development of direct ocean capture (DOC) techniques, which can directly capture CO2 from seawater, it said in a statement released Tuesday. They will accelerate development towards the early implementation of DOC and consider a wide range of technologies to solve global issues, the statement said.
Electrifying – Engineers at Australia’s Monash University have developed an electrified reactor that they say offers a sustainable solution for the dry reforming of methane, used to make chemicals like methanol, ammonia, and synthetic fuels. These process usually rely on fossil fuels to power reactions that reach high temperature, however the Monash paper said the reactor, when powered by renewables, could cut carbon emissions by 60%.
AMERICAS
Cancelled – A lawsuit filed by the US Chamber of Commerce and other business groups against the state of California has had its hearing on the matter cancelled, according to docket filings. The hearing was initially scheduled for Sep. 10, and then delayed to Oct. 15, before it was ultimately cancelled. The case will be decided upon without oral arguments, the filings said. The lawsuit looks to overturn the state’s climate disclosure laws – SB 253 and SB 261 – enacted last year. California filed a motion asserting its authority to compel climate-related disclosures from large companies operating in the state through SB 253 and SB 261, arguing that the US Chamber, California Chamber of Commerce, American Farm Bureau Federation, and other groups involved in the federal lawsuit haven’t yet suffered and that the federal Clean Air Act doesn’t pre-emptively bar the state from implementing its laws. In a 34-page filing, the state responded to the business groups’ assertion that California is seeking to “regulate greenhouse-gas emissions outside of [California’s] own borders” — not from actual regulation of the emissions themselves, since the laws only require disclosure, but from “pressure”.
500 miles – Texas-based carbon pipeline and storage developer CapturePoint could more than triple the length of its 150-mile (241.4-km) CO2 pipeline in Louisiana, to reach East Texas and southern Arkansas. CapturePoint CEO Tracy Evans said the project could expand to around 500 miles, E&E News reported on Tuesday. The company is one of the developers for the Central Louisiana Regional Carbon Storage Hub.
Rejected – California’s Senate will not take up ABX 2-9 as of Tuesday, a bill proposed by Assemblymember Cottie Petrie-Norris (D) that would require California regulator ARB to speed up its review of a 15% ethanol blend, up from 10% today. The bill passed through the Assembly special session unanimously last week, but Senate President Pro Tempore Mike McGuire (D) said that more analysis and additional work is needed on the proposal. (E&E News)
VOLUNTARY
Water-based CO2 takes off – Tynam Earth Fund, the climate tech venture capital arm of Tynam Funds Management, led the pre-seed raise of the Brooklyn-based CO2 removal startup Vycarb, the company announced on Wednesday. Founded in 2022, Vycarb develops scalable water-based decarbonisation technology to capture and store CO2 for less than $100 per tonne. Vycarb demonstrated its technology in New York City’s East River during NY Climate Week – the project can capture up to 100 tonnes of CO2 per year. The company will continue to scale up in the US. Vycarb’s ocean-based decarbonisation solutions have led to prepurchases by Stripe, a founding member of the carbon removal buyers club Frontier, and Swedish-based climate fund Milkywire, an investment from internation mining conglomerate Rio Tinto, and a deal with the US government, the Carbon Herald reported on Monday.
INVESTMENT
Green power deals – Brookfield Asset Management is eyeing opportunities to ink billion-dollar deals in renewable power after valuations dropped in recent years, Bloomberg reported. Earlier in 2024, the asset manager raised $10 bln for a fund dedicated to investing in the energy transition as well as $2.4 bln for a similar fund focused on emerging markets and is now looking for investments of around $1 bln of equity, an executive said in London. One of the most exciting markets for renewables investment is India, where the government is far behind on delivering on targets for green power, they said.
Crypto meets ETS – A fund application for the 7RCC Global Bitcoin and Carbon Credit Futures ETF was filed with the US Securities and Exchange Commission on Monday, appointing the cryptocurrency exchange Gemini as the fund’s custodian. The fund intends to reflect the price of bitcoin and the value of carbon credit futures, the futures contracts on emissions allowances issued by various cap-and-trade programmes. 20% of the Index’s portfolio will be carbon credit futures following the European Union ETS, the California Carbon Allowance, and the Regional Greenhouse Gas Initiative. The sponsor, Tidal Investments, is a subsidiary of the wider ETF investment and technology company Tidal Financial Group, which has partnered with more than 50 ETF issuers to date to launch over 100 ETFs, Gemini stated in December.
Transition risk tool – The Intercontinental Exchange launched on Tuesday a multi-asset class climate transition risk solution to assess emissions estimates for municipal bonds, mortgage-backed securities, and real estates. Clients will be able to use this new tool to benchmark their financed emissions, addressing the existing gaps in emissions data. “Mortgages and mortgage securities can represent more than 20% of bank balance sheets, leading to a growing need for data to help meet regulatory disclosure and support stress testing to inform decision-making,” Larry Lawrence, head of ICE Climate, said in a statement.
SCIENCE & TECH
New DAC – Nonprofit Research Triangle Institute is developing novel direct air capture (DAC) technology with support provided by the US Department of Energy’s National Energy Technology Laboratory, on behalf of the Office of Fossil Energy and Carbon Management, the lab announced Tuesday. RTI plans to design and field a bench-scale DAC system optimised for wind-driven operation. The current project will support integrated bench-scale field testing of the technology under actual environmental conditions.
AND FINALLY…
Off piste – Residents of Seyne-Les-Alpes, a town located in the southern French Alps, voted on Sunday to close the municipality’s ski lifts, which will be dismantled and sold. Some 71% of those taking part in a referendum on Oct. 6 voted in favour of closing the ski station called le Grand Puy, due to the increasing lack of snow, which led the municipality of 1,300 inhabitants to pump around €350,000 a year into the ski resort. The operation was no longer profitable as turnover at the station fell 60% within 10 years due to global warming. (Blue News).
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