CP Daily: Wednesday November 27, 2024

Published 02:12 on November 28, 2024  /  Last updated at 02:12 on November 28, 2024  /  Newsletters

A daily summary of our news plus bite-sized updates from around the world.

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TOP STORY

EU timeframe for approval of applications to import CBAM goods is too long, industry groups say

The EU is proposing too long a timeframe for the approval of applications from companies looking to import goods subject to the Carbon Border Adjustment Mechanism (CBAM), according to feedback from industry associations and governments around the world.

AVIATION

Airlines already buying CORSIA-eligible carbon credits, says commodity firm

As the first year of CORSIA Phase 1 nears its end, airlines are planning their purchasing of eligible carbon credits despite the current short supply, according to a representative from a major commodity trading firm.

EMEA

European carbon prices expected to remain stable this winter, pick up in 2025 -analysts

European carbon prices are likely to experience a relatively stable winter, with downside potential in the case of above-average temperatures, according to analysts at a bank.

INTERVIEW: EU carbon market becoming more volatile as industrial emissions overtake power sector

Heavy industries, led by steel and the oil and gas sector, are fast-eating into the power sector’s share of emissions under the EU ETS, opening a new era made of greater uncertainty in the bloc’s carbon market, say analysts.

BRIEFING: EU, North Africa forging new links to speed up renewables rollout

European and North African policymakers are hoping that a deepsea power cable across the Mediterranean will soon help to spread the region’s abundance of solar, wind, and hydropower across the EU – but technical, regulatory, and political challenges still abound.

EU Parliament approves second von der Leyen Commission, with refocused Green Deal

The second European Commission headed by Ursula von der Leyen received the green light from the European Parliament on Wednesday, opening a new five-year policy cycle in Brussels that is expected to refocus the EU’s climate agenda on strengthening Europe’s industrial competitiveness.

Spanish bank to mobilise €100 bln in sustainable finance through 2027

A Spanish bank has pledged to mobilise €100 billion in sustainable finance over the next three years, it announced Wednesday.

FEATURE: Dutch firm eyes branching out with army of tree-seeding robots

A Dutch nature restoration company aims to improve the scalability of reforestation with a fleet of tree-seeding robots that could help national tree-planting schemes.

Saudi Aramco partners with Danish firm to scale low-carbon hydrogen technology

Danish CO2 reduction company Topsoe has partnered with Saudi oil giant Aramco to develop and commercialise low-carbon hydrogen technology, the two companies announced on Wednesday.

Euro Markets: EUAs touch seven-day low as gas weakens, while UKAs slide as reform hopes dim

EU carbon prices dropped to their lowest in seven days on Wednesday along with a decline in natural gas, as weekly position data showed investment funds building length for a third week in a row, while UKAs also dropped to their lowest in seven weeks amid heavy trading as participants may be losing patience for long-awaited market reforms.

Carbon removal key for new UK climate targets, govt agency says

Carbon removal technologies will need to start rolling out soon, government advisors told a parliamentary committee Wednesday, as they discussed UK Prime Minister Kier Starmer’s recently-announced national climate target of cutting emissions 81% by 2035 compared to 1990 levels.

AMERICAS

WCI Markets: CCAs stage quick recovery after bearish sentiment from ARB’s rulemaking delays sinks Q4 auction clear

The Q4 California-Quebec current vintage carbon auction settled at nearly a $2 discount to secondary market prices and in line with a large cross-section of trader expectations, even as California Carbon Allowance (CCA) futures bounced quickly from the weak result.

Global bank expects CCAs to reprice above $40 in Q1 2025 on ETS rulemaking progress

An Australian global bank expect clarity from outstanding policy elements in delayed WCI rulemaking into the first quarter next year to potentially help reprice California Carbon Allowances (CCA) above $40.

ARB bi-weekly offset issuance picks up week-on-week, majority DEBs-tagged

Nearly 80% of California regulator ARB’s latest issuance of compliance-eligible offsets were marked with direct environmental benefits (DEBs) to the state, as volumes picked up week-on-week, agency data released Wednesday showed.

Washington Clean Fuel Standard credit surplus nears 1.5 mln in Q2 2024

The net credit surplus in Washington’s Clean Fuel Standard (WCFS) neared 1.5 million in Q2 2024 as the programme recorded the second-highest number of credits generated in a quarter since its launch, state data showed.

US Energy Department management of $400 bln loans at “tremendous risk” under tight deadlines -report

Recent expansions of programmes at the US Department of Energy (DOE) pose “tremendous risk” to taxpayers as the agency needs to appropriate a large amount of money under tight deadlines, a report from the DOE Inspector General said.

Maine sues oil companies for climate change claims

Maine on Tuesday joined a growing wave of US states suing major oil companies with claims that the firms exacerbated climate change and misled consumers with greenwashing campaigns.

Colorado opens online carbon trading system as market nears launch

Colorado has opened an online carbon credit trading system as the state takes a step closer to launching its market.

ASIA PACIFIC

Australia on track to meet climate targets, as nature reform laws stall again

Australia will meet its 2030 climate targets to cut emissions 43% below 2005 levels by 2030, according to fresh analysis by the government, while efforts to pass a bill on the country’s nature reforms have been put on hold again.

Indian aluminium major teams up with global consultancy for carbon offset projects

India’s largest aluminium producing company has partnered with an auditing and consulting firm for carbon reduction projects and biodiversity conservation in the Indian state of Odisha.

Bank raises short-term ACCU price forecast

One of Australia’s “big four” banks has raised its price forecast for Australian Carbon Credit Units (ACCUs) thanks to increasing demand and smaller than expected issuance.

ADB approves $500 mln loan to help Philippines implement NDC, adapt to climate change

The Asian Development Bank (ADB) has approved a $500-million policy-based loan to help the Philippines implement its Nationally Determined Contribution (NDC) and more broadly mitigate the effects of climate change.

Japanese oil major teams up with domestic partner to drive down emissions in livestock farming

A top refiner in Japan has secured another partnership to carry out emissions reduction projects in the country’s livestock production industry, targeting the abatement potential in dairy and beef cattle farming for the carbon credit market.

BIODIVERSITY (FREE TO READ)

All our nature and biodiversity articles remain free to read (no subscription required). However, as of Oct. 24 we will require that all readers have a Carbon Pulse login to access this content in full. To get a login, sign up for a free trial of our news. If you’ve already had a trial, then you already have a login.

INC-5: Price floor for plastic credits needed to build market credibility, PCX says

A price floor should be established in the emerging plastic credit market to avoid a flood of low-integrity credits, including under national producer responsibility schemes, a standards body has told Carbon Pulse.

INC-5: Verra expects to onboard up to 40 plastic credit projects within a year

Environmental standard Verra plans to expand its plastic credit programme with an additional 40 projects expected to be onboarded within a year, the company told Carbon Pulse.

INC-5: South Korea has highest number of fossil fuel, chemical reps at plastic negotiations

Some 220 fossil fuel and chemical industry representatives have registered to participate in UN discussions of a treaty aimed at tackling plastic pollution, the highest number at any of the negotiations on the agreement so far, according to analysis released Wednesday.

INC-5: BRIEFING – Plastic talks stalling as stocktake shows insufficient progress

The first stocktake of the ongoing negotiations on the UN plastic treaty on Wednesday showed a lack of progress on key measures to address plastic pollution, with some observers questioning whether a meaningful treaty will be agreed this week.

High levels of general public approval of UK’s biodiversity net gain impacts, research suggests

The English public generally approve of the environmental impacts of the country’s biodiversity net gain (BNG) policy, a pre-print paper has found.

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EVENTS

Carbon Forward Middle East – Jan. 16-17, Abu Dhabi – Announcing Carbon Forward Middle East in Abu Dhabi, a great new event to explore carbon markets in the MENA region. We’ll be releasing more details about this conference soon. For now, put Jan. 16-17 in your calendar and email info@carbon-forward.com to express interest in attending, speaking, or sponsoring.

European Industrial Carbon Management Summit – Dec. 5, Brussels: The Zero Emissions Platform flagship event will bring together industry leaders, policymakers, civil society and scientific experts to discuss the future of industrial carbon management across Europe. Get ready for insightful keynotes, case studies from pioneering projects, and panel discussions on the deployment of industrial carbon management technologies. The Summit is the perfect space to connect with peers working at the forefront of industrial decarbonisation. Registrations are now open – do not miss your chance to be part of the conversation. 

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REPORT

Discover High-Quality NBS Credits: Redefining carbon removal with community agroforestry – Dive into Supercritical’s latest report on Community Agroforestry, a high-integrity nature-based solution delivering high-quality carbon removal alongside transformative community benefits. With rigorous quality standards and satellite-based MRV, Community Agroforestry regenerates ecosystems, empowers local communities, and ensures measurable CO2 removal. Discover why this innovative approach is setting a new standard for impactful carbon removal. Read the report

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SURVEY

CDR.fyi has launched the first-ever durable Carbon Dioxide Removal (CDR) Pricing Survey to gather insights on pricing perceptions within the CDR industry. The survey, now open until Dec. 6, targets both purchasers and suppliers of durable CDR with separate versions for each. It covers 15 CDR methods, including biochar carbon removal, DAC, and mineralisation, and is aimed at gauging optimal pricing and acceptable price ranges for various methods. The survey aims to determine the prices purchasers are willing to pay, the pricing suppliers need to expand operations, and demand signals across methods for 2025 and 2030. Responses will remain confidential, with data reported in aggregate and accessed only by non-conflicted team members. Results will be published post-survey, with a full report available to survey respondents and CDR.fyi premium users. The initiative seeks to provide essential pricing benchmarks to support carbon removal market growth.

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SUBSCRIPTION OFFER

We’re offering new subscriber organisations 15 months of access to our news and intelligence for the price of 12. Purchase an annual subscription by Dec. 20, 2024, and get 3 extra months for free. Have we recently quoted you a price? Our 15-for-12 offer applies to that too, if you purchase your subscription by Dec. 20. Email sales@carbon-pulse.com to inquire.

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BITE-SIZED UPDATES FROM AROUND THE WORLD

EMEA

Less fizz for Wizz – The UK’s Advertising Standards Authority (ASA), a watchdog, has slapped a ban on a Wizz Air advert on Google that claimed “Fly Wizz Air – one of the greenest choices in air travel”. The ASA challenged whether the claim “one of the greenest choices in air travel” was misleading. Hungarian airline Wizz Air said it had committed billions of euros to aiding the airline industry’s decarbonisation efforts. It operated the youngest and most carbon-efficient fleet in Europe, with an average age of 4.3 years. As a result, it had the lowest carbon emissions per passenger at 52 g carbon dioxide per revenue passenger kilometres (CO2/RPK). Wizz Air also said it was actively renewing its fleet of aeroplanes – replacing the Airbus A320ceo aircraft with the Airbus A321neo, with a reduction in fuel consumption of 10% and a per-seat fuel improvement of 20% – and has invested in research and development of sustainable aviation fuel. The ASA said it acknowledged that Wizz Air had based the claim on the type of aircraft they used, and the carbon emissions per passenger measured in CO2/RPK, but that was not stated in the advert. Consumers would not be able to understand the comparison. “The ad must not appear again in the form investigated,” because comparative claims such as “greener” or “friendlier” must be made clear, said the ASA.

Save the carmakers – Seven EU countries will on Thursday call for action to safeguard the competitiveness of the domestic automotive industry, as stricter emissions limits for companies to invest in innovation, Bloomberg reported. At a meeting of EU competition ministers, Italy, Poland, Austria, Bulgaria, Czechia, Romania, and Slovakia will urge the bloc to find a way to help carmakers avoid fines for breaching emission targets that take effect in 2025. The group wants to refine automotive policy by balancing demand stimulation with investment support.

Transfer window – The Joint Committee under the EU-Swiss Linking Agreement has confirmed the 2025 arrangements for transferring emission allowances between the EU ETS and the Swiss ETS. The linking agreement, effective since Jan. 2020, allows for the mutual validity of emission allowances and facilitates their physical transfer between the two systems. From 2024, transfers are conducted daily (Monday to Friday) except on specified dates. The 2025 transfer schedule follows the same framework as in 2024, covering January to December 2025. Updates to the arrangements or calendar will be announced at least one month in advance, while short-term changes due to unforeseen circumstances will be notified with a minimum of five working days’ notice. Cancelled transfer dates will not be rescheduled unless explicitly stated. Market participants can initiate transactions at any time, which will be processed on the next working day following the respective registry’s rules, including transaction delays of 26 hours in the EU registry and 24 hours in the Swiss registry. Details on 2026 arrangements will be provided before the end of 2025.

Swiss decarbonisation incentives – Switzerland’s Climate Protection Ordinance will come into force on Jan. 1 alongside the Climate Innovation Act, setting out the decarbonisation incentives the government will provide for the industrial and construction sectors, the government announced on Wednesday, after deciding to bring the ordinance into effect. The Climate Innovation Act provides a legal basis for Switzerland’s long-term climate goals, including for net zero emissions by 2050, and creates a time-limited stimulus programme to help replace oil-, gas-, and electric-fired heating with renewable systems, and improve energy efficiency. The Climate Protection Ordinance provides details on the incentives under the act, including to focus support where it is currently insufficient – primarily with replacing residential fossil fuel heating systems. It also sets out measures for climate change adaptation to ensure that financial flows are compatible with climate targets.

Clean mining – The European mining industry association, Euromines, released its decarbonisation roadmap on Wednesday, outlining how the mining industry can achieve net-zero emissions across its operations in Europe. Key decarbonisation pathways include: 1) Rapid electrification of mining operations; 2) Large-scale carbon capture, and fossil-free explosives; 3) Full digitisation of mining operations by 2040, and; 4) Alternative fuels like hydrogen and biofuels, that are expected to account for 50% of iron ore pellet and magnesite production by 2040.

Green guidance – Loch Lomond and the Trossachs National Park in Scotland have set out green finance guidelines to ensure natural capital investments within its boundaries adhere to high ethical and environmental standards, BusinessGreen reports. The guidance stresses that all green finance projects should be backed by ethical standards, transparency, and accountability, with an emphasis on the importance of carbon credit projects securing reliable, independent verification – including through government-backed schemes such as the Woodland Carbon Code and/or Peatland Carbon Code. Scotland is seeing a surge of natural capital projects on its land given its much lower population density compared to England and growing awareness among private landowners of opportunities in the natural capital space.

ASIA PACIFIC

Cardamom crisis – France24 recently aired a documentary uncovering illegal logging in Cambodia’s Keo Seima and Southern Cardamom REDD projects. The investigation revealed extensive deforestation linked to hydropower dam construction within protected areas, undermining the integrity of carbon credits sold to companies like Delta Airlines and Air France. Cambodia’s government dismissed the documentary, accusing it of misinformation, and arrested six activists involved in exposing the issue. However, no action was taken to address the illegal logging, REDD-Monitor notes. The Southern Cardamom REDD project, the country’s largest and most contentious, has seen alleged land seizures affecting local communities, including the Chong Indigenous people, who lost farming land to REDD project operations. Villagers struggle to survive, relying on loans and subsistence fishing after being displaced. The documentary highlights systemic failures in REDD+ implementation, claiming that standards body Verra reinstated the Southern Cardamom project despite allegations of human rights violations and inadequate investigation. Critics including Human Rights Watch argue that REDD projects often prioritise carbon offset sales over environmental protection and community welfare. The companies purchasing carbon credits from these projects, such as Boeing, declined to engage with France24. Verra has allowed anonymous allegations of human right abuses at Southern Cardamom to be posted during a public consultation, sparking a furious response from the developer, who said the claims are groundless.

Supply secured – Australian mining and tech company Fortescue has signed a deal with Chinese heavy machinery manufacturer XCMG worth $400 mln to supply it with over 100 pieces of zero-emissions heavy mobile equipment, the company announced. The deal represents XCMG’s largest contract outside of China for mining equipment and will see battery electric wheel loaders, wheel dozers, water carts, float prime movers, and graders delivered to Fortescue’s Pilbara mining operations in Western Australia by 2030. The first pieces are expected to be deployed from 2026 and the total order will eliminate millions of litres of fossil fuels from Fortescue’s iron ore operations, the company said.

Count me in – Japanese project developer Green Carbon has partnered with Vietnam’s agriculture regulators to participate in a government-led emissions reduction project that covers one million hectares of rice fields in the southern Mekong Delta region, it announced Wednesday. Green Carbon said it has signed a memorandum of understanding (MoU) with the agriculture departments of Soc Trang Province, Can Tho City, and Bac Lieu Province to promote the alternate wetting and drying (AWD) technique.

Agreement soon – World Bank is expected to sign a coastal restoration agreement with the Indian state of Tamil Nadu in Jan. 2025, the New Indian Express reported. The state government’s Tamil Nadu Coastal Restoration Mission, which will be rolled within the next two months, will see the formalisation of an agreement with the World Bank, sources told the local newspaper. Officials have confirmed that 30% readiness, a prerequisite for signing the contract, has been achieved, and a detailed project report is being prepared. The government will set up Tamil Nadu Blue Carbon Agency, which will be responsible for overseeing the preservation and restoration of targeted coastal ecosystems, including mangroves, seagrass, and salt marshes. The initiative will not only enhance ecosystem services, but will also create a framework for trading of carbon credits.

Doing our bit – Thailand’s national oil company PTT Public Company Limited (PTT) is stepping up efforts to reduce CO2 emissions from its businesses by adopting carbon capture, utilisation, and storage (CCUS) technology and preparing to run a trial on hydrogen usage to become less dependent on fossil fuels, Bangkok Post reported. In 2020, PTT and its subsidiaries emitted 44.9 mln tonnes of CO2e a year, it added. The oil major is pushing ahead with its plan to use CCUS technology to store 1 MtCO2e emitted during the gas production process at the Arthit gas block in the Gulf of Thailand. According to PTT, the CCUS pilot project is scheduled to commence operations by 2027. The oil firm had also teamed up with five companies from France and South Korea to produce green hydrogen in Oman. Efforts of the state-owned oil company will help Thailand meet its net zero emissions target by 2065.

Need more gas – British oil major BP has approved $7 bln investment for the Tangguh UCC project in West Papua, Indonesia, which is expected to unlock around 3 trillion cubic feet of additional gas resources, a press statement said. “This project not only unlocks a fantastic gas resource, it also represents an Indonesian first through the use of CCUS (carbon capture, utilisation, and storage) to maximise gas recovery,” it added. The UCC project involves developing the Ubadari gas field, enhancing gas recovery through CCUS, and expanding onshore compression at the Tangguh LNG facility. Production from the Ubadari field is expected by 2028. Tangguh’s CCUS component aims to be Indonesia’s first large-scale carbon capture initiative, potentially sequestering around 15 MtCO2e in its initial phase.

AMERICAS

Toyota weighs in – Toyota’s Chief Operating Officer Jack Hollis authored an op-ed in the Wall Street Journal Sunday urging the incoming administration to revamp federal mandates related to EVs. Hollis targeted an EPA regulation that would call for 44% new vehicles sold in 2030 and 56% of new vehicles sold in 2032 to be EVs, which he described as a “de-facto electric vehicle mandate”. In his op-ed, Hollis asked President-elect Donald Trump to broaden the types of low-emitting vehicles that can be eligible under the EPA rules. “Our approach provides consumers with many choices: hybrids, plug-in hybrids, fuel-cell electric, and battery-electric vehicles,” he wrote, adding that the EPA rule harms the industry’s ability to offer a variety of zero or low-emitting vehicles to consumers.

NY money for heat pumps – New York Governor Kathy Hochul (D) has put $10 mln on tap for clean heating and cooling technologies for use in large buildings across the state, according to a Wednesday announcement. The funding is from via New York’s new Clean Heat for All: Packaged Terminal Heat Pump programme, which provides capital to heating and cooling manufacturers and building owners for the production and demonstration of energy efficient heating and cooling units. The state described the programme as a “plug-and-play solution” for replacing old inefficient air conditioners and lowering building emissions.

Big spenders – An investigation published Wednesday by the Investigative Journalism Foundation and CBC Saskatchewan into spending on Canadian ads against federal carbon pricing found an outlier campaign group as among the top ad buyers, alongside conservative parties and politicians. Campaign group Energy United, which has ties to the Canadian Association of Petroleum Producers, spent between $135,000-174,000 on Facebook and Instagram ads denouncing federal carbon pricing, ranking fourth in total ad spend behind federal opposition leader Pierre Poilievre, the provincial Ontario PC Party, and the federal Conservative Party of Canada.

Ontario CO2 storage – The government of Ontario published on Wednesday several proposed changes to its Resource Management and Safety Act of 2024, of which includes provisions for carbon storage. The Act encompasses the Geologic Carbon Storage Act, which will support innovation and emissions management by regulating carbon storage in underground formations; the Forest Fires Prevention Act, which is expected to strengthen community preparedness by requiring municipalities and certain industries to have a wildland fire management plan and modernise enforcement measures; the Oil, Gas, and Salt Resources Act, which the administration expects would enhance the their ability to address hazardous wells and allow cost recovery for actions taken.

Forestry funding – The US Endowment for Forestry and Communities has announced the second round of its Impact Investing Program, offering up to $6.5 mln in funding for 2025. A request for proposals (RFP) will be issued in Jan. 2025, with an informational webinar scheduled for Dec. 18, 2024. The programme seeks to achieve measurable social and environmental impact alongside financial returns, focusing on three key areas: forests, communities, and markets. In its first round, the programme invested $3.5 mln in three companies advancing sustainable forestry solutions. Round two aims to distribute up to $6.5 mln to companies, funds, or projects delivering transformative, sustainable outcomes for US forests and forest-reliant communities. Consulting firm Gordian Knot Strategies, is assisting in programme development and will lead the December webinar.

VOLUNTARY

Poised for growth – Commodities trading firm Trafigura is anticipating record growth in the voluntary carbon market, driven by new regulatory frameworks aiming to mainstream these instruments in emissions accounting. The market, previously seen as experimental, is now evolving into an investment-grade asset class, Hannah Hauman, Trafigura’s global head of carbon trading, told Bloomberg. She highlighted the significance of new regulations providing companies with clearer guidelines for emissions reductions and planning. But the VCM saw a 23% decline in value in 2023, with major companies like HSBC, Shell, and Delta scaling back their involvement. Despite this, regulators in Europe, the US, and Asia recognise carbon credits as essential for achieving net-zero targets, particularly for removals-based credits. Trafigura, claiming to be the world’s largest trader of carbon removal credits, has faced past challenges with unreliable projects but is now adapting to the new regulatory environment, Hauman said. The company is expanding its projects, including a $500-mln initiative to restore African woodlands, and capitalising on rising demand.

Rice carbon projects – The Sustainable Rice Platform (SRP), a multi-stakeholder alliance with over 100 institutional members, is seeking farmer-facing partners to implement large-scale pilot carbon credit projects, according to a call for expressions of interest published on Monday. The initiative aims to leverage carbon finance to support smallholder rice farmers and accelerate the adoption of low-emission practices. Developed in collaboration with CarbonFarm and AgriCapture, the pilot projects will use SRP’s Low Carbon Assurance Module to verify Scope 3 emission reductions and generate new revenue streams for farmers. Participants can lead emission reduction projects or collaborate with investors seeking carbon credit returns.

Electricity emissions – Verra introduced on Wednesday VT0010, a new tool in its Verified Carbon Standard (VCS) Program for calculating emissions from electricity consumption and generation. The tool is compatible with various electricity sources and builds upon previous Clean Development Mechanism (CDM) procedures. VT0010 allows for both direct measurement and estimation methods and includes scenarios for different types of electricity sources. The tool aims to standardise emissions measurement and meet the Integrity Council for the Voluntary Carbon Market (ICVCM)’s Core Carbon Principles. Existing methodologies using the older CDM TOOL05 will be revised to adopt VT0010.

AND FINALLY…

Highway to the climate danger zones – A new study by IIASA and Columbia University has created the first global map of regions most vulnerable to extreme heat, highlighting “climate danger zones.” Published in PNAS, the research examines 65 years of heatwave data, revealing areas where extreme temperatures are rising faster than average seasonal warming. Key regions include central China, Japan, Korea, the Arabian Peninsula, eastern Australia, parts of South America, the Arctic, and northwestern Europe – where heatwaves caused tens of thousands of deaths in recent years. The study found that extreme heat in these regions is accelerating more rapidly than climate models predict, often linked to factors like soil drying and specific weather patterns. In contrast, some areas, such as Siberia, northern Africa, and parts of North America, have experienced slower warming than models suggest. The authors note that these trends indicate complex physical interactions not yet fully understood, and emphasise the severe health, agricultural, and infrastructural risks posed by such unprecedented heat.

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