Carbon Pulse

Today’s voluntary carbon market (VCM) and the use of carbon credits to support net zero are at a crossroads. Embracing transparency offers a way forward, argues Tommy Ricketts of BeZero Carbon.

A massive REDD+ carbon credit issuance expected in the coming months has sparked unease from some experts that say the tens of millions of forest protection units are not fit for the voluntary market, while the willingness of buyers to support the efforts remains in the balance.

Several European utilities confirmed a surge in their fossil-based generation covered by the EU ETS in H1 results this week, as plunging hydro output due to drought-like conditions across Iberia, and nuclear availability issues tightened supply margins.

EUAs drifted on Friday morning as the market consolidated after the previous session's near-4% gain, holding above a key technical support as energy markets pared the week's strong rises.

The spot price for Chinese carbon allowances barely moved over the past week due to lukewarm market sentiment, while the offset sector experienced a breath of fresh air from the Guangzhou bourse.

The government of China’s Hainan province has issued a plan to roll out its first batch of blue carbon projects as plans move ahead to launch a purely ocean and marine-based offset exchange on the island later this year.

An ASX-listed mining company has signed an agreement with an Australian tech company focused on sustainability to provide Guarantee of Origin (GO) certification for the full supply chain and production of “green” pig iron.

The New Zealand government has indicated that it is unlikely to implement a ban on permanent exotic plantings in its ETS next year, sparking outrage from the agricultural industry.

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

Both California Carbon Allowance (CCA) and RGGI Allowance (RGA) prices tracked broader market sentiment this week, rebounding towards the latter part of the period, while the status of Pennsylvania’s Q3 auction volumes remained unresolved.

California electricity consumption in 2021 bounced back from a slight hit taken during the onset of the COVID-19 pandemic, with fossil gas generation increasing further amid a continued dearth of zero-carbon hydroelectric generation, according to state figures.

Provisions to link federal wind and solar energy development to oil and gas leasing in the revamped US budget reconciliation package garnered heavy criticism from some environmental organisations on Thursday, though other green groups were supportive of the package’s methane fee and clean energy tax credits.

The appointed body overseeing the UN's new carbon crediting mechanism met for the first time this week, agreeing a fee structure and to meet again twice before November's COP27 UN climate talks to keep pace with its aim of having the system ready by the end of 2023.

A Toronto-based VER investment firm on Thursday estimated its growing project portfolio will cross the 20-million credit mark by 2027, as the company also disclosed recent funding commitments and project milestones.

Parts of the crypto community have bandied together to form a special action DAO to try to crowdfund cash to bid in auctions for oil exploration and drilling rights in the Democratic Republic of Congo (DRC).

A European soil carbon crediting company is planning to expand to the Americas and Australia after acquiring a British-based emissions auditing specialist.

California Governor Gavin Newsom’s (D) request to beef up the stringency of the 2022 Scoping Plan will not affect the state’s existing target for 2045 carbon neutrality, a spokesperson for regulator ARB told Carbon Pulse.

Prices and liquidity on the CBL platform slid in the second quarter as the impact of the global economic slowdown amid rampant inflation took its toll on the voluntary carbon market, Xpansiv CBL revealed on Thursday.

China has quietly replaced the environment ministry official in charge of the nation’s emissions trading scheme, sources have confirmed, as the challenges facing the programme continue to build.

EUA prices gradually rallied throughout Thursday morning amid steady buying interest in a thin market, while energy prices edged lower as a utility said a major UK gas storage site could reopen this winter and Russia said a key component of the Nord Stream pipeline could be delivered soon.